Contracts, Transfer, and Escrow Practice Question
Question
A first-time buyer asks for exam-focused clarification involving counteroffer. Which statement is the most accurate exam answer? (Item 67)
Answer choices
- A. It shifts all responsibility to escrow and eliminates the broker’s duties.
- B. It makes oral promises enforceable in every real estate transaction.
- C. Identify that a counteroffer rejects the original offer and proposes new terms.
- D. It is optional whenever both parties verbally agree to proceed.
Correct Answer
C. Identify that a counteroffer rejects the original offer and proposes new terms.
Explanation
The correct answer is C because counteroffer requires candidates to identify that a counteroffer rejects the original offer and proposes new terms. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: medium
- Domain: Contracts, Transfer, and Escrow
- Objective: counteroffer