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 Indiana Real Estate Commission. What should the licensee understand? (Item 6)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Indiana exam practice.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
B. 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 B 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: counteroffer