Assignment vs Novation

National · Contracts & Transfer of Title — free cheat sheet for the real estate licensing exam.

📄 Contracts & Transfer of Title

📋 The 1-minute cheat sheet

Assignment: transfer contract RIGHTS to someone else — original party STAYS liable
Novation: NEW contract/party substituted — original party RELEASED
Real estate contracts are assignable unless they say otherwise (or are personal-service)
'Subject to' financing = assignment flavor: seller still liable on the old loan
Assumption WITH novation releases the seller

Is Assignment vs Novation on the real estate exam?

Yes. Contracts & Transfer of Title is a scored domain on the real estate licensing exam, and this topic appears in the national portion.

Is this cheat sheet free?

Yes — every page on CinnaPrep's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.