Contracts

A novation in a Utah real estate contract occurs when:

ABoth parties agree to modify a single term of the contract
BA new party is substituted for one of the original parties with the consent of all parties✓ Correct
CThe contract is recorded at the county recorder
DThe agent is replaced by a new agent

Explanation

Novation substitutes a new party or obligation for an original one in a contract, releasing the original party. All parties must agree. It is sometimes used when a buyer wants to transfer a purchase contract to a new buyer.

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