Minnesota State Real Estate Practice Test

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Prepare for the Minnesota Real Estate Exam. Study with flashcards and multiple choice questions. Each question includes hints and explanations. Gain confidence and pass your exam!

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If a buyer receives a counteroffer from the seller and then the seller receives a better offer, under what condition can the seller accept the new offer?

By presenting the new offer to the buyer
If the buyer agrees to the counteroffer
The seller withdraws the counteroffer first
By notifying the buyer about the better offer

The correct answer is: The seller withdraws the counteroffer first

In real estate transactions, when a seller makes a counteroffer to a buyer, a binding agreement is not created until either party accepts the counteroffer. The seller retains the ability to consider other offers, but to accept a new one, the seller must first withdraw the original counteroffer. This means the proposed terms of the counteroffer are no longer active, allowing the seller to shift their focus to the new offer without being legally bound to negotiate with the original buyer. The option stating that the seller must withdraw the counteroffer is accurate because, once the counteroffer is made, the seller cannot simultaneously accept a new offer while that counteroffer remains pending. This ensures clear communication and prevents conflicting obligations between multiple parties, which maintains the integrity of the negotiation process.