Contracts
A 'novation' in Pennsylvania real estate means:
AAdding a new party to an existing contract
BSubstituting a new contract or party for an original one, releasing the original party from obligations✓ Correct
CRenewing a lease with updated terms
DCreating a new easement on a property
Explanation
Novation is the substitution of a new party, obligation, or contract for an existing one with the consent of all parties. In mortgage assumptions, novation occurs when the lender releases the original borrower from liability upon the new buyer's assumption — the new borrower replaces the old one completely.
Related Pennsylvania Contracts Questions
- An addendum to a purchase contract:
- What is an 'addendum' in a Pennsylvania real estate transaction?
- What does 'as-is' mean in a Pennsylvania real estate purchase agreement?
- In Pennsylvania, a real estate sales contract becomes legally binding when:
- In Pennsylvania real estate, 'specific performance' is a legal remedy that:
- What is the purpose of an escalation clause in a Pennsylvania real estate offer?
- A Pennsylvania installment land contract (agreement for deed) transfers equitable title to the buyer while:
- Under Pennsylvania law, if a buyer fails to close without legal justification, the seller's typical remedy is to:
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →