What is the effect of a counteroffer in real estate negotiations?

What is the effect of a counteroffer in real estate negotiations?

• A. It terminates the offer and creates a new one.
• B. The counteroffer must be attached to the original offer.
• C. The offeree must sign the counteroffer; does not sign the original offer.
• D. The seller must withdraw counteroffer to accept another offer.

Answer: (A)

The key idea is that a counteroffer ends the original offer and creates a new offer with different terms. When the offeree responds with changes—such as price, contingencies, or timelines—the initial offer is considered rejected, and the counteroffer becomes a fresh proposal from the responder to the other party. The responder becomes the offeror for these new terms, and the contract only forms if the original offeror accepts the counteroffer. The counteroffer does not have to be attached to the original terms, and signing the original offer isn’t required once a counteroffer has been made. A seller doesn’t have to withdraw a counteroffer to consider or accept another bid; they respond to the current terms, and a contract results only if the counteroffer is accepted.

The key idea is that a counteroffer ends the original offer and creates a new offer with different terms. When the offeree responds with changes—such as price, contingencies, or timelines—the initial offer is considered rejected, and the counteroffer becomes a fresh proposal from the responder to the other party. The responder becomes the offeror for these new terms, and the contract only forms if the original offeror accepts the counteroffer. The counteroffer does not have to be attached to the original terms, and signing the original offer isn’t required once a counteroffer has been made. A seller doesn’t have to withdraw a counteroffer to consider or accept another bid; they respond to the current terms, and a contract results only if the counteroffer is accepted.