Yes, NOVATION is a Scrabble word!

Letter values in Scrabble US: N 1, O 1, V 4, A 1, T 1, I 1, O 1, N 1.

Is it a valid word?

NOVATION is a valid word in the official Scrabble dictionary (US), the UK Scrabble Dictionary and Words with Friends (ENABLE).

(law) the replacement of one obligation by another by mutual agreement of both parties; usually the replacement of one of the original parties to a contract with the consent of the remaining party