Anyone Heard of a Novation Contract

and seems the basic difference is: In contrast to an assignment, which is valid so long as the obligee (person receiving the benefit of the bargain) is given notice, a novation is valid only with the consent of all parties to the original agreement: Wiki

I've heard it used as a tool for seller finance.
If you buy a property and the seller carry's the contract (aka Seller Finance), and you intend to resell the property with seller finance, the novation agreement allows for this to happen without having to get approval from the person carrying your note.

Your resale note would be for a higher sales amount and likely a little higher interest rate (you use an all inclusive trust deed, also called a 'wrap around mortgage'). That way it is like a rental, but better. You get the positive cash flow without being a landlord, (one drawback, you don't get the tax benefits of being a landlord).

Jim

So which one would be more beneficial?

Which one would protect us more?

My girlfriend is almost licensed here in MN and she was studying assignments and the novation contract came up in her studies. It seems that there is less responsibility falling on me, the wholesaler, with a novation contract. Because the assignment means that I'm still the responsible party and in the end if there are any problems with the deal, it falls on me. With the novation, the buyer (investor) is the responsible party from the start. I'm just novating the property I have under contract to him. Instead of an assignment fee I would charge a novation fee to release the contract.

If your just assigning the contract, use and/or assigns, or an addendum that allows you assign the contract. I really don't think the novation agreement is applicable on an assignment. As I said above, I believe it is for the transfer of a seller financed note. It kind of does the same thing, but they are different tools for different events.
I could be wrong. I would recommend speaking to an attorney.
I am just going by my own experience.

your and or assigns beside your name..