What is the term for the process when both new and old buyers share responsibility in a transaction?

The correct term for the process when both new and old buyers share responsibility in a transaction is assumption. Assumption occurs when a buyer takes over the existing loan obligations of the seller. This means that the new buyer steps into the seller's shoes, agreeing to take on the mortgage or debt associated with the property.

This process often benefits buyers who may find it easier to qualify for a mortgage on terms that are more favorable than what they could achieve independently. The lender needs to approve this arrangement, ensuring they are aware and in agreement with the change in responsibility.

Other terms mentioned do not fit this context. Novation refers to the act of replacing one of the parties in a contract with the consent of all parties involved, essentially creating a whole new contract. Subrogation refers to the right of a third party to pursue a legal claim on behalf of another party, often seen in insurance contexts. Partition involves dividing property among co-owners, usually in a legal context when one party seeks to divide shared property. None of these accurately describe a scenario involving the shared responsibility of a transaction between new and old buyers.