Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following statements about a counter offer is correct?

1. It only changes the irrevocable period

2. Form changes are required for it

3. Only accomplished via amendments

4. Only buyers can make counter offers

5. Must remain readable at all times

6. Applies to original offer's terms

The correct answer is: Only accomplished via amendments

The correct statement about a counter offer is that it is only accomplished via amendments. When one party responds to an offer with changes to its terms, it effectively creates a counter offer. This process requires the use of an amendment form or documentation to officially record the modifications to the original offer. Creating an amendment is essential because it clarifies the new terms being proposed and ensures that all parties involved understand the updated agreement. A counter offer nullifies the original offer, meaning the original terms are no longer valid, and the two parties must negotiate the new terms based on the counter offer. Other options are not correct for various reasons. For instance, a counter offer does not only change the irrevocable period, nor does it mean only buyers can make counter offers. Both buyers and sellers can propose counter offers. A counter offer also does not specifically require form changes in any way that is distinct from amendments, nor does it need to remain readable at all times because readability is typically considered a basic requirement for all contractual documents, not just counter offers. Lastly, while it may reference terms from the original offer, a counter offer effectively creates new terms rather than merely applying to the original offer's conditions.