Contracts
A novation in a New Mexico real estate context occurs when:
AAn offer is rejected and a counteroffer is made
BAn original contract party is replaced by a new party, fully releasing the original party✓ Correct
CThe seller agrees to make repairs
DThe buyer extends the closing date
Explanation
Novation substitutes a new party for an original party in a contract, completely releasing the original party from obligations. All remaining parties must agree to the substitution.
Related New Mexico Contracts Questions
- A buyer in New Mexico submits an offer. The seller changes the price and signs. This creates:
- In New Mexico, a seller accepts a buyer's offer but adds a new condition before signing. This creates a:
- A New Mexico purchase contract states 'closing on or before July 15.' The actual closing occurs on July 14. This is:
- In New Mexico, a 'financing contingency' deadline in a purchase contract means:
- In New Mexico, a purchase contract that is 'contingent upon the sale of the buyer's current home' is an example of a:
- Under New Mexico law, which remedy allows a party to seek court-ordered performance of a real estate contract?
- A contingency clause in a New Mexico purchase contract that is not satisfied by the deadline will:
- In New Mexico, a 'novation' in a mortgage context means the original borrower is:
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →