A Novation Agreement for Sale is a comprehensive legal instrument executed among the original seller, the original purchaser, and a new purchaser whereby the existing Agreement to Sell is formally substituted by replacing the original buyer with the new buyer, with the seller’s express consent, thereby transferring all contractual rights, benefits, obligations, and liabilities under the original sale agreement to the incoming purchaser while typically discharging the outgoing purchaser from future responsibilities (unless otherwise agreed), ensuring continuity of the transaction without cancelling the original contract, and commonly used in real estate dealings where an allottee or initial buyer intends to assign their purchase rights prior to execution of the final sale deed, subject to applicable stamp duty, regulatory approvals, and compliance requirements.
