Humber/Ontario Real Estate Course 3 Exam Practice

If a property has an irrevocable offer until July 20, which of the following is accurate?

1. The offer can be revoked verbally by the buyer any time.

2. The buyer may only revoke the offer before July 10.

3. The offer cannot be revoked before July 20 without penalty.

4. The offer remains valid regardless of any counteroffers.

5. The seller cannot request changes before July 20.

6. The offer closes automatically on July 20 if not accepted.

The correct answer is: The offer cannot be revoked before July 20 without penalty.

The correct answer is that the offer cannot be revoked before July 20 without penalty. This highlights the nature of an irrevocable offer, which is legally binding and indicates that once made, the buyer cannot withdraw their offer until the specified date without facing potential consequences. This provides protection to the seller, ensuring they can consider the offer until the expiration date without the risk of it being retracted prematurely. The concept of an irrevocable offer is designed to give both parties a clear timeframe to negotiate and make decisions. Thus, if the buyer attempts to revoke the offer prior to the expiration date of July 20, it could be construed as a breach of agreement, and they may be liable for damages or other penalties depending on the terms set forth in the offer itself. Regarding the other options, while the offer remains valid up to July 20 and may be subject to negotiation through counteroffers, it specifically cannot be revoked without penalty before that date. This distinction is crucial in understanding the implications of irrevocable offers in real estate transactions.