Humber/Ontario Real Estate Course 4 Exam Practice

Which statement is true regarding offers and counter-offers?

1. A buyer's offer is valid if it is written and signed by the buyer.

2. A counter-offer must be initialed by the buyer only.

3. If a buyer counters a seller's offer, the co-operating brokerage must keep the offer for 2 years.

4. Only the listing salesperson must initial changes in the counter-offer.

5. A counter-offer can be oral and still be valid.

6. When countering by changing the price, only the new price needs to be initialed.

The correct answer is: A buyer's offer is valid if it is written and signed by the buyer.

A buyer's offer being valid when it is written and signed by the buyer is indeed a true statement. In real estate transactions, a written offer is a critical document, and a signature signifies that the buyer agrees to the terms outlined in the offer. This creates a legally binding intention to enter into a contract, assuming the seller accepts the offer as presented. Other statements present various misunderstandings about the requirements of offers and counter-offers. For example, counter-offers do not have strict requirements that limit the initialing to only one party; both parties typically need to initial any changes made, and a counter-offer can be more complex than just price adjustments. Additionally, while offers should generally be retained for a period for legal purposes, the duration mentioned in options may not reflect standard practices or legal requirements.