You’ve locked up a novation deal

The seller is on board. The terms are clean. And now it’s time to list the property.

This is where most wholesalers either freeze or fumble. Why? Because they don’t know what to say in the listing description.

Too vague, and the buyer’s agent gets suspicious. Too aggressive, and you scare away retail buyers.

Too sloppy, and your title company might flag the file, or worse, your state real estate board might have questions.

So in this guide, we’ll walk you through exactly what language you should (and should not) include in a real estate listing when marketing a novation deal.

We'll cover:

• What novation actually means in plain English

• Why disclosure is required (yes, even if you're not licensed)

• What listing copy should say to stay transparent and attractive

• Sample listing descriptions and clauses you can use

• And how to respond to skeptical agents without killing the deal

Why You Need to Disclose a Novation in the Listing

Let’s clear this up first:

If you are marketing a property that you do not own, you must disclose the nature of your interest.

That’s true in every state, whether you’re licensed or not.

Why?

Because most MLSs, real estate boards, and even buyer-side lenders want to know that:

• The seller is aware that the property is being listed

• You are authorized to market it

• The contract terms allow substitution

• The end buyer can take title directly from the seller

And with novation, all of that is legal and above board, as long as you say it.

The good news? You don’t have to say “novation.” In fact, you shouldn’t.

Why? Because most agents, buyers, and lenders don’t know what that means, and introducing legalese is a fast track to fear, confusion, and dropped offers.

Instead, you’ll use plain, honest, accurate language that accomplishes three goals:

1. Discloses that you’re not the property owner

2. Reassures the buyer that the title is clean and transferable

3. Keeps the focus on the opportunity, not your structure

What NOT to Say in the Listing

Here are a few phrases you should avoid completely:

• “Under contract with intent to assign”

• “Investor looking to double close”

• “Wholesaler looking for a buyer”

• “Title still in seller’s name”

• “Flipper-friendly if you know the right people”

• “Fee paid outside of escrow”

• “Don’t worry, seller doesn’t know I’m listing it” 😬

These either scream unlicensed activity, introduce doubt, or imply deception, even if your deal is perfectly legal.

What to Say Instead: The Core Disclosure Language

The best approach is to be transparent but professional. Here’s a base version of the language that works in most listing descriptions:

Note: A principal is marketing this property in a fully executed purchase agreement. The seller has consented to the property being listed, and the end buyer will take title directly from the seller at closing. All terms subject to seller approval.

Let’s break this down:

• “Principal in a fully executed purchase agreement” makes it clear you have real contractual interest

• “Seller has consented” addresses the top compliance concern

• “End buyer will take title from the seller” shows it's not an assignment

• “All terms subject to seller approval” protects the seller and signals legitimacy

You don’t need to elaborate or use investor jargon. Just be upfront in a calm, professional tone.

Sample Listing Description (Retail-Ready Novation)

Here’s what an actual full listing description might look like when using a novation structure:

Beautifully maintained 3-bed, 2-bath home on a quiet cul-de-sac, ready for its next owner. Open floor plan, upgraded kitchen, large backyard with covered patio, and new HVAC system installed in 2023. The roof is in great condition. Perfect for first-time buyers or those looking for low-maintenance living.

Note: A principal is marketing this property in a fully executed purchase agreement. The seller has consented to the marketing and sale of the property. Buyer will receive the title directly from the seller at closing.

This format:

• Leads with the value of the property

• Ends with the disclosure

• Gives no reason for concern, but leaves no room for ambiguity

How to Add Disclosure in the Agent Remarks (MLS-Specific)

Many MLS systems allow agent-only remarks (not shown to the public). If you’re using a local listing service, you can add an additional explanation like this:

Listing broker is working under authority granted by the seller via purchase agreement and novation addendum. Seller is aware of all marketing activity and will sign final contract directly with end buyer. Fee to listing broker/principal to be paid at closing via HUD.

This helps title and cooperating brokers understand the deal. Some local boards may have specific language requirements. Check with your real estate attorney or broker if unsure.

Do You Need to Mention the Word “Novation”?

No, and in most cases, you shouldn’t.

Why?

Because:

• It introduces a term most people won’t understand

• It could lead to unnecessary lender delays

• It might make buyer agents nervous

Instead, focus on the mechanics, not the name:

• The seller will sign the contract

• The buyer will receive title from the seller

• You are authorized to market the property

That’s all anyone needs to know, especially if you’re dealing with conventional financing or nervous retail agents.

How to Respond to a Curious (or Skeptical) Buyer’s Agent

Let’s say an agent calls and asks:

“Are you the owner of this property?”

Here’s a simple script:

“I’m not the current title holder, I’m a principal in a contract to purchase the property. The seller is fully aware and has authorized me to market it. The buyer will purchase the property directly from the seller, and title will transfer cleanly through escrow.”

If they push further:

“This isn’t a wholesale assignment or a double close. It’s a novation deal, title passes directly from seller to buyer, just like a normal transaction. We’ve done several of these with conventional and FHA loans without issue. I can connect you with the title rep if needed.”

You don’t need to hide. You just need to sound calm, informed, and legally grounded.

Can You List a Novation Deal Without Being a Licensed Agent?

If you are not licensed, and you're listing on the MLS, you must work with a licensed listing agent or brokerage. Do not list it directly yourself.

Here’s how that setup typically works:

• You hire an agent to list the property

• The seller signs a “Limited Authorization to List” or “Marketing Addendum” that gives consent

• You instruct the agent on your preferred listing language

• Your fee is built into the HUD or paid via a consulting agreement approved by title

Done right, this is 100% legal and professional.

Disclosure Tips If You’re Only Marketing Off-MLS

If you’re using Facebook Marketplace, investor groups, or email lists, you still need disclosure.

Try something like:

Under contract with seller consent. Buyer to close directly with seller via standard purchase agreement. Clean title, inspections welcomed. All terms subject to seller approval.

Avoid:

• “We own it” if you don’t

• “Easy assign” or “double close required”

• Anything that implies the seller doesn’t know

Remember: If a buyer senses something shady, they’ll walk.

What Title Companies Want to See

Many closings fall apart at the 11th hour because the title company gets confused about your role.

Here’s how to keep things clean:

• Make sure your agreement with the seller includes permission to market and novate

• Provide a signed novation addendum or agreement

• Explain that the title transfers directly from the seller to the end buyer

• Make sure your fee is clearly disclosed in the HUD

• Get a payoff letter or consulting agreement signed and submitted to title in advance

And if you’re ever unsure, have a real estate attorney or experienced title rep walk you through the best setup for your market.

Transparency + Professionalism = More Closed Deals

You don’t have to be loud about your novation structure. You just have to be clear, accurate, and honest.

When your listing language:

• Clarifies your role

• Establishes seller consent

• Reassures about title transfer

• Uses simple, professional wording

…you’ll find that buyer agents ask fewer questions, lenders don’t get spooked, and title doesn’t throw up a red flag three days before close.

Be the investor who plays it straight. That’s how you close more deals and get invited back.