Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Washington Real Estate Broker Exam involving counteroffer and Washington broker licensing structure. Which statement is the best answer? (Item 114)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Washington exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Washington 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 Washington 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