Contracts
In NH, a 'novation' in the context of a real estate contract means:
AAdding a new contingency to an existing contract
BSubstituting a new party or obligation for an existing one, releasing the original party✓ Correct
CExtending the closing date
DAdding a buyer's name to the contract
Explanation
Novation is the substitution of a new party or new obligation for an existing one, with the consent of all parties, and releasing the original party from liability. In mortgage context, a novation occurs when a lender approves a new borrower and releases the original borrower from the loan obligation.
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