Deed of Novation

Deed of Novation

Transfering the contractual rights and obligations from outgoing parties to incoming parties? You’ll need a 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.
$ 299 incl GST
Deed of Novation

Trusted by

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.
  • Guarantors
  • 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
  • Indemnities
  • Details of parties involved
  • Default Interest provision
  • Costs
  • 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.

Deed of Novation - You've got this!
  • Expertly crafted legal documents customised to your specific circumstances in less than 15 minutes

  • Download and print a PDF versions instantly

  • No need to speak with a lawyer – you’ve got this

$ 299 incl GST

You've got this!

Create your own customized document now. No lawyer needed!

Not quite right? Looking for something else?

What other documents might I need?

If you’re interested in a Deed of Novation you might also need to think about:

Or check out these articles below

Need lawyer-prepared documents instead?

We've got this! Get in touch now

Get documents tailored to YOUR business, not nobody's business

 

Biztech Lawyer’s ‘done for you’ service will help you create a document that is truly tailored to your business’ circumstances, risk appetite and commercial needs.

This might involve a small extra expense. But from experience, there’s a false economy in documents that don’t do what you want them to do, when you want them to do it.

Let our expert commercial lawyers get it done for you.

The Biztech Lawyers difference

We will truly grasp the complexities and needs of your tech-driven business unlike any other legal partner…

  • Documents prepared by expert Australian lawyers with 10+ years legal experience
  • Includes initial discussion, drafting and one round of changes
  • No charge for initial scoping discussion
  • Turned around in 24-48 hours

We are business and technology lawyers who assist businesses with all their commercial legal needs.

WE GET YOU

We will truly grasp the complexities and needs of your tech-driven business unlike any other legal partner…

We have deep practical experience across top-tier law and strategy consulting, and we’ve also held operational xand leadership roles in scaling some of the most exciting start-ups to come out of Australia and conquer the world.

WE’VE BEEN THERE

We will get your deal done the way you want: commercially, strategically, and cost effectively…

We thrive in high-growth environments. We’re nimble, agile, and responsive. We know boot strapped, keep things lean, and offer billing solutions to suit you.

WE’RE WITH YOU

We will focus on your growth to reach new heights — as your decision making partner, problem solving workhorse and operations specialist — to transform legal in your business.

We have a unique legal and operations skill set, drawing on a network of specialist lawyers and tech partners across the world to support you through every stage of development.

Lawyer-prepared docs — the process from here

We’ve helped draft thousands of agreements for businesses just like yours.

Arrange a call for a time that suits

Connect with us using the form above or call to talk with one of our experienced commercial lawyers. This step is free. There is no charge for discussing your plans with us. We love talking with inspiring business people!

We get to work

We produce the document and submit it to you for review, comment or approval.

You review and approve

You review and provide your feedback on the draft. You let us know what you'd like amended to suit your commercial objectives, risk appetite or other business circumstances.

It's ready to go!

We produce a final ready-to-use document. You can follow up with us at any time with questions or comments.