A novation contract in real estate is a legal agreement that replaces an existing contract with a new one, transferring the rights and obligations from one party to another. In simple terms, it’s like swapping out one person for another in a deal while keeping the terms mostly the same. For real estate investors, especially those involved in wholesaling, novation is a powerful tool that allows a wholesale contract to be converted so a retail buyer can purchase a home that was initially under contract with a wholesaler.

Category : Wholesaler Articles