Contracts
In South Dakota, 'novation' in a real estate contract context means:
AAdding a new clause to an existing contract
BSubstituting a new party or obligation for an original party or obligation, releasing the original party✓ Correct
CExtending the closing date
DCanceling the contract without replacement
Explanation
Novation is the substitution of a new party or obligation for an original one, with the consent of all parties, and with the original party being released from liability. For example, if a buyer's obligation under a purchase contract is assumed by a new buyer through novation, the original buyer is released.
Related South Dakota Contracts Questions
- In South Dakota, a real estate contract is discharged (terminated) by all of the following EXCEPT:
- In South Dakota, an 'as-is' clause in a real estate contract means:
- In South Dakota, which of the following BEST describes 'substantial performance' in a real estate contract?
- A seller accepts a buyer's offer but changes the closing date. This creates:
- In South Dakota, a seller who wishes to accept a buyer's offer but change one term (price, closing date, etc.) must:
- A South Dakota purchase agreement states the buyer will purchase the property 'as-is.' This means:
- Under the South Dakota Seller's Property Condition Disclosure, which statement about the seller's obligations is TRUE?
- In South Dakota, a listing agreement that does not specify an expiration date is:
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →