Novation Agreement

The smart alternative to a traditional wholesale assignment. This Novation and Indemnification Agreement allows you to replace yourself as the buyer and transfer the deal directly to a third-party purchaser — keeping your profit intact while the property closes cleanly between the seller and your end buyer.

This comprehensive agreement includes:

• Conditional termination of the original Purchase and Sale Agreement upon execution of the new third-party contract

• Earnest money refund provisions ensuring the original deposit is returned to the buyer upon the third-party's deposit being made

• Renovation & repair obligations clearly assigned to the buyer, protecting the seller from liability

• Indemnification clause shielding the seller from any claims arising from the buyer's pre-settlement activity

• Net proceeds structure outlining exactly what the seller retains at closing

• Failure to close protection automatically reinstating the original agreement if the third-party purchaser defaults

• Liquidated damages formula providing a clear method for calculating losses in the event of seller default

• Electronic & facsimile signature acceptance for quick, seamless execution