Humber/Ontario Real Estate Course 3 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

Start Multiple Choice Practice Test
Start Flash Cards

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

In which scenario is it acceptable for a seller to handle a multiple offer situation?

  1. Rejecting all offers and setting a new deadline for revised submissions.

  2. Countering two offers at a higher price and accepting the first one to agree.

  3. Discussing price adjustments directly with potential buyers without formal counter offers.

  4. Revealing the details of all offers to ensure fairness for all involved buyers.

  5. Accepting the lowest offer without any conditions attached to it.

  6. Accepting one conditional offer but keep the others as backup offers.

The correct answer is: Rejecting all offers and setting a new deadline for revised submissions.

In a multiple offer situation, it is standard practice for sellers to have some advantage in managing offers. When a seller rejects all current offers and sets a new deadline for revised submissions, they create an opportunity for interested buyers to present improved proposals based on the initial offers they received. This approach allows the seller to gauge the true market value of their property by inviting a fresh round of bids, which may lead to higher offers or better terms. This method is acceptable because it maintains the integrity of the bidding process, ensuring all buyers have a fair chance to respond to the seller's needs and expectations. It acts as a way for the seller to potentially leverage the competition without disclosing information about specific offers or terms presented by other buyers, which could undermine a fair bidding process and lead to legal complications. In contrast, other scenarios may compromise fairness, competition, and buyer trust. For instance, countering two offers at a higher price while accepting the first agreement can lead to complications or disputes if the buyer later disputes the terms. Similarly, discussing price adjustments directly or revealing all offer details could create an uneven playing field and ethical concerns. Accepting the lowest offer without conditions or keeping backup offers also poses challenges as it may not reflect the best deal for the seller and

More Questions Like This