Humber/Ontario Real Estate Course 4 Exam Practice

What happens when multiple offers are presented for the same property?

1. The seller has the right to accept, reject, or counter any of the offers.

2. The broker must disclose the details of each offer to all buyers.

3. Only the highest offer price is considered by the seller.

4. The first offer received must be given priority.

5. All offers must be presented in the order they are received.

6. The seller can only choose one offer to formally respond to.

The correct answer is: The seller has the right to accept, reject, or counter any of the offers.

When multiple offers are presented for the same property, the seller retains the right to accept, reject, or counter any of the offers. This is a standard practice in real estate transactions, as sellers have the autonomy to decide which offer best meets their needs, preferences, and circumstances. The seller can choose to negotiate with one or more buyers, potentially looking for better terms such as price, conditions, or closing dates. The other options do not accurately reflect the seller's rights in this situation. While transparency is important in real estate transactions, brokers are not required to disclose the details of each offer to all buyers. Instead, they must present all offers to the seller, allowing the seller to make an informed decision. The idea that only the highest offer price is considered is misleading, as sellers often look at various factors beyond just price. The first offer received does not automatically take priority; all offers must be evaluated fairly. Additionally, sellers are not restricted to respond to only one offer; they can engage with multiple buyers if they choose to do so.