63. A property is listed for $218,000. An offer of $210,000 is submitted to the listing licensee. The offer includes a free-standing stove and refrigerator. The seller accepts the price and the refrigerator, but is not willing to leave the stove. The listing licensee makes the change in the contract to exclude the stove. The seller signs and initials the change. The buyers orally accept the change. Which of the following is true regarding this situation?
Answer: A
The original offer was rejected and the seller's counteroffer must be accepted in writing.
In this situation, the original offer of $210,000 was effectively rejected when the seller made a change to exclude the stove. This change constitutes a counteroffer, which must be accepted in writing to be valid.
A) The original offer was rejected and the seller's counteroffer must be accepted in writing.
This option accurately reflects the legal principle that once a seller makes a counteroffer (by changing the terms of the original offer), the original offer is considered rejected. For the counteroffer to be binding, it requires acceptance in writing from the buyers.
B) Neither the seller nor his licensee has a right to make any changes to the original offer.
This option is incorrect because the seller does have the right to counter an offer by making changes to its terms. The seller's ability to negotiate and alter the offer is a fundamental aspect of real estate transactions.
C) The offer has been signed and accepted by all parties and creates a valid contract.
This option is incorrect as well. While the seller signed and initialed the change, the buyers only accepted the change orally. Therefore, without written acceptance of the counteroffer, a valid contract has not been formed.
D) The buyer's licensee can sign the change regarding the stove on behalf of the buyer.
This option is also incorrect. The buyer's licensee cannot sign on behalf of the buyer unless there is explicit authority given to do so, which is not indicated in this scenario. The buyer's acceptance must be in writing to validate the counteroffer.
Conclusion
The correct answer is A, as it highlights the necessity for written acceptance of a counteroffer after the original offer has been rejected. All other options fail because they either misinterpret the rights involved in the negotiation process or incorrectly assert that a valid contract exists without proper acceptance protocols being followed.