Contracts

In Wyoming, 'novation' in a real estate transaction refers to:

AA new construction method
BThe substitution of a new contract (or new party) for an old one, with the consent of all parties✓ Correct
CAdding new terms to an existing contract by addendum
DFiling a new deed when the original is lost

Explanation

Novation replaces an existing contract with a new one, or replaces one party with a new party. In real estate, novation may occur when a buyer assumes a mortgage and the original borrower is released from liability—a new borrower (with lender approval) is substituted for the original.

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