Deed of Novation
This do-it-yourself, customisable document generator will navigate you through the complexities of executing a Deed of Novation, creating a legally-binding document in minutes.
How does it work?
Our intuitive tool will guide you through the process step-by-step from start to finish. It’s quick, easy and simple to understand – just how legal documents ought to be.
The expert interview wizard will help you answer a few questions and prepare your document in the background. You’ll have your custom Deed of Novation in 15 minutes or less.
When you’re done, print or download a PDF versions for you to review, customise or sign.
What is a Deed of Novation?
A Deed of Novation transfers the rights and obligations held by a party under a contract to an incoming third party. Once complete, the leaving parties no longer hold any rights and obligations under the contract.
This document allows the terms of the agreement to stay the same while switching the parties to whom they apply, creating a contractual relationship between the continuing parties and new incoming parties.
A common example is a tenant of a rental property passing the lease to a subletter, who assumes the rights and obligations of the lease.
When should I use a Deed of Novation?
A Deed of Novation should be used if you’re looking to have the rights and obligations of one or more parties, or leaving parties, transferred to a third party, the incoming parties.
What topics does a Deed of Novation cover?
- Number of Parties including Leaving Parties, Incoming Parties, and Continuing Parties.
- Defining the role the Leaving Parties
- Details of the contract being novated including the title of the contract, and the date of execution.
- Conditionality of the Novation and Actions needed to be taken by Incoming Parties for the execution of novation.
- Time and Place of Completion
- Referring to Parties
- Documents to be delivered when novation takes effect
- Details of parties involved
- Default Interest provision
- Governing Law
- Boilerplate language
What are the main decisions I need to make in creating a Deed of Novation?
- Do you want to add any conditions precedent to the execution of novation?
- Where and when do you want novation to be executed?
- What documents need to be delivered when novation takes place?
- Do you expect the incoming parties to indemnify the leaving parties in respect of the period before AND/OR after the novation?
- Do you want to include a Default interest clause?
- How do you want the costs of the novation process to be divided amongst the parties? How will the costs of leaving parties be handled? How will the costs of incoming parties be handled? How will the costs of continuing parties be handled?
What other names does a Deed of Novation go by?
A Deed of Novation is also known as:
- Novation Agreement
- Letter of Novation
- Contract transfer agreement
- Contract assignment (although this is a separate and distinct concept from novation)
- Contract Amendment Deed
- Novation of Contract Deed
- Deed of Novation Template: Single Party Retiring/Continuing
- Deed of Novation Template: Multiple Parties Retiring/Continuing
- Novation agreement (ab initio)
Frequently Asked Questions
The parties involved are the incoming parties, the leaving parties, the continuing parties, and any guarantors.
Generally you would need this document when transferring the rights and obligations arising under contract to a third party.
An assignment only transfers the rights of a contract, whilst a Deed of Novation transfers both the rights and obligations of a contract to a third party.
Yes, you can have up to 5 leaving parties.
Yes, you can have up to 5 incoming parties.
Yes, you can have up to 5 continuing parties.
Yes, you can have up to 3 leaving guarantors and 3 incoming guarantors.
- How many parties will be leaving? How many parties will be incoming? How many parties will be continuing?
- Are there any incoming or leaving guarantors?
- Conditions precedent to the novation
- The definition of the role of the leaving parties
- Where and when the novation is to be executed
- Awareness of any documents needed to be delivered when novation takes place
- Party details
- How you want associated costs to be divided
There are several signing options available. How you sign largely depends on where the parties are located and if they will attend signing together. You can print on paper and sign, or use electronic signature tools such as Docusign or Hellosign.
If you need a hand, we’ve got your back. Should you need any assistance please contact us directly, we are always happy to help.
If you have any questions or are uncertain about any aspect of the document, please do not sign it or use it. Contact us directly and we will be happy to assist.
Absolutely! Get in touch with us and we can provide a fixed-fee price to review it.
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