Contracts
Novation in a South Dakota real estate transaction means:
AThe parties agree to a new closing date
BOne party is replaced by a new party, who assumes all obligations, releasing the original party✓ Correct
CThe broker finds a new buyer after the first buyer defaults
DA new offer replaces a previous counteroffer
Explanation
Novation substitutes a new party (or new contract) for an old one, with all parties' consent. The original party is fully released from obligations, unlike an assignment where the original party may remain liable.
Related South Dakota Contracts Questions
- Under South Dakota contract law, a 'unilateral mistake' in a real estate contract (only one party was mistaken about a key fact) typically:
- A South Dakota listing agreement requires the seller to allow the broker to place a lockbox on the property. This clause is:
- In South Dakota, a 'force majeure' clause in a real estate contract addresses:
- In South Dakota, a 'purchase agreement' (sales contract) for real estate typically becomes binding when:
- In South Dakota, a 'contingent offer' means the buyer's obligation is:
- In South Dakota, what is the legal effect of a 'contingency' in a real estate purchase contract?
- Which of the following clauses in a South Dakota real estate purchase contract allows the buyer to terminate if they cannot obtain financing?
- An acceleration clause in a South Dakota promissory note allows the lender to:
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 →