Contracts
A buyer makes a written offer that the seller accepts with a minor handwritten change initialed only by the seller. This creates:
AA binding contract because the change is minor
BA counteroffer, not an acceptance — the buyer must accept the modified terms✓ Correct
CA void agreement
DA contract requiring AREC approval
Explanation
Any modification to an offer — even minor — constitutes a counteroffer rather than an acceptance. For a binding contract to form, the buyer must accept the seller's counteroffer (the initialed change) without further modification.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
State-Specific Concepts
AREC Regulation
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