Humber/Ontario Real Estate Course 2 Exam Practice

Seller Curtis has received an offer from Buyer Taylor for $295,000. All terms are acceptable except for the price. To counter this offer with a higher price of $310,000, Curtis should:

1. Amend the irrevocable clause in the buyer's original agreement and attach a counter offer form with the higher price.

2. Sign a counter offer form stating the higher price of $310,000.

3. Amend the original offer, as this is the only method to counter an offer.

4. Have both the counter offer form and the original purchase agreement signed.

5. Communicate directly with Buyer Taylor to verbally agree on the new price.

6. Send a formal letter outlining the desired price change to Buyer Taylor.

The correct answer is: Sign a counter offer form stating the higher price of $310,000.

To counter the offer from Buyer Taylor with a higher price of $310,000, Seller Curtis should sign a counter offer form stating the new price. This is the most appropriate and common method for counter offering in real estate transactions. By signing a counter offer form with the higher price, Curtis is clearly indicating the new terms and price he is proposing to Buyer Taylor. The other options are not the correct course of action in this situation: - Option A suggests amending the irrevocable clause in the buyer's original agreement, which is not necessary when simply countering the offer with a higher price. - Option C stating that amending the original offer is the only method to counter an offer is incorrect because a counter offer form specifically designed for this purpose is the appropriate document to use. - Option D recommending both the counter offer form and the original purchase agreement to be signed is unnecessary, as only the counter offer form with the new price needs to be signed. - Option E advising to communicate directly with Buyer Taylor to verbally agree on the new price is not a recommended practice as verbal agreements may lead to misunderstandings and are not legally binding. - Option F suggesting sending a formal letter outlining the desired price change is not as effective or secure as signing a counter offer form with the updated price. Therefore, option B is the correct choice as it aligns with the standard procedure for countering an offer with a higher price in a real estate transaction.