Humber/Ontario Real Estate Course 3 Exam Practice

How should a seller properly counter an offer regarding the price difference?

1. By modifying the original purchase agreement directly and signing with the amendments.

2. By filling out and signing a separate counter offer form specifying the new price.

3. By verbally discussing changes with the buyer and later amending the agreement.

4. By having a lawyer prepare a new purchase agreement reflecting the higher price.

5. By sending a revised offer back to the buyer for original signatures and terms approval.

6. By negotiating the price through intermediaries and not altering the original document.

The correct answer is: By filling out and signing a separate counter offer form specifying the new price.

Filling out and signing a separate counter offer form specifying the new price is the best practice for properly countering an offer regarding the price difference. This method ensures that all terms of the counter offer are clearly laid out and that both parties have a formal document to refer to. A separate counter offer form adds clarity and specificity, reducing the potential for misunderstandings between the seller and buyer. This approach also provides a written record of the seller’s intentions, which is crucial in real estate transactions. The use of a dedicated form signifies an official response to the buyer's offer, establishing that the seller is willing to negotiate the terms rather than accepting the original offer as is. This is vital for maintaining professionalism and transparency in the transaction process. Moreover, referencing a separate counter offer protects the integrity of the original offer while clearly delineating the modifications proposed by the seller. This leaves the buyer with a comprehensible and formal basis for considering the changes, which is important for any ensuing negotiations.