Contracts
In South Carolina, 'novation' in a real estate transaction occurs when:
AA new buyer assumes the seller's mortgage
BOne party to a contract is replaced by a new party, releasing the original party from obligations✓ Correct
CBoth parties agree to extend the closing date
DThe contract price is renegotiated
Explanation
Novation substitutes a new party for an original party in a contract, with all parties' consent, and releases the original party from their obligations. For example, a buyer may be released from a mortgage when a creditworthy new buyer assumes it.
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