Humber/Ontario Real Estate Course 3 Exam Practice

When presenting an offer to a seller, what options does the seller have?

1. Accept the offer and then ask the buyer for an additional deposit later.

2. Only accept or counter the buyer's offer.

3. Counter the offer only regarding the price, not other terms.

4. Accept, reject or counter the buyer's offer.

5. Accept the offer with modifications without buyer's consent.

6. Reject the offer and propose a new offer to the buyer.

The correct answer is: Accept, reject or counter the buyer's offer.

The correct answer is the one that reflects the traditional options a seller has when receiving an offer. A seller's primary focus is to achieve the most advantageous terms in the transaction. Therefore, the ability to accept, reject, or counter the buyer's offer provides the seller with maximum flexibility in negotiations. Accepting the offer means the seller agrees to the terms as proposed. Rejecting the offer indicates that the seller is not willing to proceed based on the current terms and, if they wish, may choose to counter the offer with changes to certain terms, including price, contingencies, or closing dates. This flexibility allows sellers to negotiate terms that align better with their goals and expectations. The other options do not accurately represent the seller's capabilities in this scenario or introduce conditions that may not legally or practically apply. For instance, asking for an additional deposit later is not a standard practice, nor can a seller only counter price without addressing other terms. Additionally, while modifications by the seller are common in counteroffers, they usually need the buyer's consent for any agreement to be valid. Lastly, proposing an entirely new offer after rejecting the original does not accurately fit the mechanisms of standard real estate transactions either.