Humber/Ontario Real Estate Course 2 Exam Practice

Buyer Latham has received a counter offer from the seller. What must he do to accept the changes?

1. Amend the irrevocable clause and initial this change.

2. Initial all changes made by the seller and then sign the Confirmation of Acceptance.

3. Just sign the Confirmation of Acceptance.

4. Sign a new agreement entirely.

5. Use a counter offer form to document his acceptance.

6. Only initial the new purchase price.

The correct answer is: Initial all changes made by the seller and then sign the Confirmation of Acceptance.

Buyer Latham must initial all changes made by the seller and then sign the Confirmation of Acceptance to accept the changes presented in the counter offer. This process is important as it signifies that the buyer has reviewed and agreed to all amendments made by the seller, ensuring that both parties are in mutual agreement regarding the revised terms. This strict procedure helps prevent misunderstandings and disputes that may arise from incomplete or unclear acceptance of counter offers. Option A is incorrect because amending the irrevocable clause and initialing this change is not sufficient to signify acceptance of all changes made by the seller in the counter offer. Option C is incorrect because simply signing the Confirmation of Acceptance without initialing all changes does not ensure the buyer's explicit agreement to the revised terms presented by the seller. Option D is incorrect because signing a new agreement entirely is not necessary if the buyer is willing to accept the changes proposed by the seller in the counter offer. Option E is incorrect because using a counter offer form to document acceptance is not required once the buyer has received a counter offer and wishes to proceed with the revised terms set by the seller. Option F is incorrect because only initialing the new purchase price does not sufficiently indicate the buyer's agreement to all changes in the counter offer.