Contracts, Finance, and Transfer Practice Question
Question
A seller is preparing to list a home for the Indiana Real Estate Broker Exam involving counteroffer and state agency and disclosure practice. What should the licensee understand? (Item 96)
Answer choices
- A. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- B. A verbal understanding always replaces a written real estate requirement.
- C. The safest practice is to avoid written documentation so fewer questions are raised later.
- D. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Indiana exam practice.
Correct Answer
D. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Indiana exam practice.
Explanation
The correct answer is D because counteroffer requires candidates to recognize that a counteroffer rejects the prior offer and proposes new terms. The Indiana reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: hard
- Domain: Contracts, Finance, and Transfer
- Objective: counteroffer