Humber/Ontario Real Estate Course 2 Exam Practice

If a buyer submits an offer to purchase at the listing price but the seller counters, what is the status of the original offer?

1. It remains open for consideration

2. It is terminated.

3. It converts to a secondary offer.

4. It can be accepted later.

The correct answer is: It is terminated.

When a seller counters an offer, it essentially acts as a rejection of the original offer while simultaneously presenting a new offer for consideration. At that point, the original offer is terminated, and the buyer must decide whether to accept the seller's counteroffer, submit a new offer, or walk away from the transaction. Therefore, the correct answer is B. Option A is incorrect because the original offer is no longer open for consideration once the seller counters. Option C is incorrect since the original offer does not convert into a secondary offer; it simply ceases to exist. Option D is incorrect as the original offer cannot be accepted later once the seller has countered it.