A response to an offer that changes its terms, which rejects the original offer and creates a new one.
Why Counteroffer matters on the exam
This term belongs to Contracts. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Counteroffer
Every Freehold question shows why the right answer is right — and cites its source.
Which of the following is an appropriate task for an unlicensed assistant?
Drafting a counteroffer for a licensee's signature
Ordering supplies and maintaining the office's marketing materials
Advising a seller on whether to accept an offer
Discussing commission rates with a prospective client
Show answer & explanation
Ordering supplies and maintaining the office's marketing materials — Administrative tasks like ordering supplies or maintaining marketing materials do not require a license and are appropriate for unlicensed office support staff.
Source: PSI National Real Estate Exam Content Outline — Broker Supplement
Which of the following would terminate an agency relationship by operation of law?
The agent submitting a lowball counteroffer
A buyer requesting a home inspection
The parties extending the listing term by written amendment
The bankruptcy of the principal
Show answer & explanation
The bankruptcy of the principal — Operation of law terminates agency through events like bankruptcy, death, incapacity, or the property becoming subject to condemnation, none of which require either party's consent.
Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency
When a seller responds to a buyer's offer by changing the price, the seller has:
Accepted the offer with conditions
Created an option contract
Rejected the original offer and made a counteroffer
Kept the original offer open while negotiating
Show answer & explanation
Rejected the original offer and made a counteroffer — Any change to an offer's terms operates as a rejection of the original offer and creates a new counteroffer. The original buyer is then free to accept, reject, or counter the new terms.
Source: PSI National Real Estate Exam Content Outline §7 Contracts
Freehold is an independent study resource and is not affiliated with, endorsed by, or sponsored by PSI, Pearson VUE, or any state real estate licensing board or commission. Freehold does not guarantee passage of any licensing exam.
