Contracts
A Minnesota buyer's offer includes a request for $8,000 in seller-paid closing costs. The seller accepts but counteroffers to provide $5,000 instead. The result is:
AA binding contract for $5,000 in closing cost assistance
BA counter-offer that the buyer must accept, reject, or counter✓ Correct
CNo binding contract since closing cost requests cannot be negotiated
DA binding contract with the original $8,000 since the seller only changed the amount
Explanation
Any change to the buyer's offer terms, including changing the closing cost assistance amount, creates a counter-offer that terminates the original offer. The buyer must respond to the counter-offer. If the buyer accepts the $5,000 counter, a binding contract is formed on those terms. If the buyer rejects or counters back, the negotiation continues.
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