Humber/Ontario Real Estate Course 3 Exam Practice

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What needs to be modified in a counter offer involving only an amended purchase price?

The purchase price and deposit should both be amended.
The irrevocable clause must be modified as well.
The pay a further sum amount should be changed accordingly.
Only the purchase price needs to be changed.

The correct answer is: The purchase price and deposit should both be amended.

In a counter offer that involves modifying only the purchase price, it is crucial to also amend the deposit amount to reflect any changes made to the total purchase price. The deposit is typically a percentage of the purchase price, and if the price increases or decreases, the deposit should be adjusted accordingly to align with the new terms of the agreement. This ensures that the terms of the offer are consistent and clear to all parties involved, preventing any confusion about the financial obligations associated with the transaction. Other elements of the agreement, such as the irrevocable clause or the "pay a further sum" amount, may not necessarily require modification if the only change pertains to the purchase price. However, the deposit is directly tied to the purchase price and must be modified to maintain the integrity and fairness of the counter offer.