Updated over 2 years ago on . Most recent reply
Novation Clause Question
Hey BP community.
I am selling a small multi family in Cleveland and I got the purchaser agreement from my realtor and there is a “Novation Clause”. I’m not sure what that is… I did some mild research and I’m unclear how it differs from an assignment in wholesaling? I have a lawyer that I’ll pass stuff through, but wanted to ask here as well. Questions I have regarding moving forward: what are the risks of me agreeing with this clause? If they put into contract, can they back out if they cannot find a buyer? They said they are purchasing, but then the agreement states they can change the contract if both parties agree. Just confused, thanks!