Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Virginia Real Estate Salesperson Exam involving counteroffer and agency disclosure and brokerage relationship duties. What should the licensee understand? (Item 186)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Virginia exam practice.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
B. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Virginia 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 Virginia 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