Humber/Ontario Real Estate Course 4 Exam Practice

If an irrevocable offer lapses due to buyer's withdrawal, what is the status of the offer?

1. The offer remains valid until the expiration of the initial time frame.

2. The offer must be renegotiated from the beginning if the seller re-accepts.

3. It cannot be re-accepted under any circumstances.

4. The offer automatically extends beyond the irrevocable date.

The correct answer is: The offer remains valid until the expiration of the initial time frame.

When an irrevocable offer lapses due to the buyer's withdrawal, the status of the offer is that it remains valid until the expiration of the initial time frame. This means that even though the buyer has expressed a desire to withdraw, the seller retains the right to accept the offer until the specified expiration date. The essence of an irrevocable offer lies in its commitment to be held open for acceptance without being subjected to a revocation by the buyer before that time frame ends. The concept of an irrevocable offer reinforces the idea that the seller has a legal right to the terms originally provided until the lapse period expires. If the seller was to accept after the buyer's withdrawal, it would not be applicable, thus not necessitating renegotiation or automatic extensions beyond the original period. Understanding this principle is crucial for navigating real estate transactions and recognizing the rights and obligations of all parties involved.