What does assignment of a real estate contract mean?
Correct Answer
B) The original party's contractual rights are transferred to a third party
Assignment transfers the contractual rights of one party to a third party (the assignee). Unlike novation, assignment does not automatically release the original party from liability — they typically remain secondarily liable unless the contract expressly prohibits assignment or the other party agrees to a full release. Many real estate purchase contracts contain clauses that restrict or prohibit assignment without the other party's consent.
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