Humber/Ontario Real Estate Course 2 Exam Practice

Which statement accurately describes a counter offer?

1. A counter offer must remain readable at all times

2. A counter offer can only be made by the seller

3. A counter offer must be made on a specific legal form

4. It must have the same irrevocable time period as the first offer

5. Only the buyer can make a counter offer

6. Counter offers always involve all parties

The correct answer is: A counter offer must remain readable at all times

A counter offer must remain readable at all times because it is a new offer made in response to an initial offer, changing the terms of the original offer. It is important for all parties involved in the transaction to be able to clearly understand the terms of the counter offer to proceed with negotiations effectively. The other options are not accurate: - Option B: A counter offer can be made by either the buyer or the seller, not solely by the seller. - Option C: While a counter offer can be made on a specific legal form for clarity and formality, it is not a strict requirement in all cases. - Option D: A counter offer does not have to have the same irrevocable time period as the first offer; the terms of the counter offer, including its expiration time, can be negotiated separately. - Option E: Both the buyer and the seller have the ability to make a counter offer, not just the buyer. - Option F: Counter offers do not always involve all parties; they typically involve the party receiving the initial offer and the party making the counter offer.