When friends replace a party in a real estate contract, this is known as what?

When friends replace a party in a real estate contract, this process is known as assignment. In real estate, an assignment occurs when a party to a contract transfers their rights and obligations under that contract to another party. This allows the new individual to step into the original party's shoes without needing to create a new contract.

The original party typically still retains some liability unless the original contract states otherwise or if there's an agreement to release them from future obligations. This transfer is often utilized when one party cannot fulfill their role in the contract but wants to ensure that the agreement is honored and the transaction can proceed. Understanding the concept of assignment is important because it affects how responsibilities and rights are handled within contractual agreements, especially in real estate transactions.