Contracts
In Vermont, a 'novation' in a real estate context refers to:
AAdding a new contingency to an existing contract
BSubstituting a new party or obligation for an old one, releasing the original party from liability✓ Correct
CRecording a deed at the town clerk's office
DCanceling a contract due to mutual agreement
Explanation
Novation replaces an original contract or party with a new one, releasing the original obligor from liability. In mortgage assumptions, a novation occurs when the lender formally substitutes the assuming buyer for the original borrower, releasing the seller from mortgage liability.
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