Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Pennsylvania Real Estate Salesperson Exam involving counteroffer and state agreement and disclosure practice. Which answer best reduces risk? (Item 42)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Pennsylvania exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
B. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Pennsylvania 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 Pennsylvania 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