A "novation agreement" entered into by the mortgage holder, the buyer, and the seller will "substitute" the buyer's responsibility for the mortgage "obligation" from the original holder to the buyer.
These are questions that the above text answers:
1. What is a novation agreement in real estate law?
2. Who are the parties involved in a novation agreement?
3. What does a novation agreement substitute in real estate transactions?
4. What is the purpose of a novation agreement in relation to mortgage obligations?
5. How does a novation agreement transfer responsibility for a mortgage obligation?
6. What is the role of the buyer in a novation agreement?
7. What is the role of the seller in a novation agreement?
8. What is the role of the original mortgage holder in a novation agreement?
9. What is the effect of a novation agreement on the buyer's responsibility for a mortgage obligation?
10. How does a novation agreement impact real estate loan payoff penalties?