Innovative Strategies

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Kenneth Jester
  • Realtor
  • Salisbury, MD
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Has anyone done a novation successfully in MD?

Kenneth Jester
  • Realtor
  • Salisbury, MD
Posted Aug 27 2022, 13:30

Hi!

I came across a deal that I believe would pencil out as a solid novation, but I have no experience and know they can get complicated legally. Appreciate any feedback or help this great community can offer!

Baltimore, Maryland

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Tom Gimer
  • Baltimore MD | Washington DC | Arlington VA
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Tom Gimer
  • Baltimore MD | Washington DC | Arlington VA
Replied Aug 27 2022, 21:22

MD doesn’t double-tax assignment deals like PA does. The novation strategy (which I don’t agree with in PA, for the record) to avoid paying double transfers on an A—>C transfer is not necessary in MD. 

So it’s a straight up assignment unless you spell out some special circumstances . 

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