Humber/Ontario Real Estate Course 4 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 4 Exam. Test your knowledge with quizzes and gain valuable insights into real estate concepts, regulations, and practices essential for your success in the industry.

Practice this question and more.

Which statement is true regarding offers and counter-offers?

A buyer's offer is valid if it is written and signed by the buyer.
A counter-offer must be initialed by the buyer only.
If a buyer counters a seller's offer, the co-operating brokerage must keep the offer for 2 years.
Only the listing salesperson must initial changes in the counter-offer.
A counter-offer can be oral and still be valid.
When countering by changing the price, only the new price needs to be initialed.

The correct answer is: A buyer's offer is valid if it is written and signed by the buyer.

A buyer's offer being valid when it is written and signed by the buyer is indeed a true statement. In real estate transactions, a written offer is a critical document, and a signature signifies that the buyer agrees to the terms outlined in the offer. This creates a legally binding intention to enter into a contract, assuming the seller accepts the offer as presented. Other statements present various misunderstandings about the requirements of offers and counter-offers. For example, counter-offers do not have strict requirements that limit the initialing to only one party; both parties typically need to initial any changes made, and a counter-offer can be more complex than just price adjustments. Additionally, while offers should generally be retained for a period for legal purposes, the duration mentioned in options may not reflect standard practices or legal requirements.