10. A property is listed for $219,900. 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 listing licensee contacts the buyer's licensee by phone regarding 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 seller's refusal to include the stove constitutes a counteroffer to the original offer. Since the buyer's acceptance of this counteroffer was communicated orally, it does not fulfill the legal requirement for acceptance, which necessitates that any changes to the terms of the original offer be accepted in writing.
A) The original offer was rejected and the seller's counteroffer must be accepted in writing.
This option is correct because the seller's decision to exclude the stove from the offer effectively rejects the original terms presented by the buyer. Consequently, the new terms proposed by the seller constitute a counteroffer, which requires written acceptance from the buyer to be legally binding.
B) Neither the seller nor his licensee has a right to make any changes to the original offer.
This option is incorrect. The seller has the right to make changes to the original offer, as seen in this case where the seller excluded the stove, thereby creating a counteroffer. The listing licensee is acting on behalf of the seller and can communicate these changes.
C) The offer has been signed and accepted by all parties and creates a valid contract.
This option is incorrect because, although the seller signed and initialed the change, the buyer did not provide written acceptance of the counteroffer. An oral acceptance does not create a valid contract under these circumstances, as written acceptance is necessary for modifications of the original offer.
D) The buyer's licensee can sign the change regarding the stove on behalf of the buyer.
This option is incorrect. The buyer's licensee cannot sign for the buyer unless there is explicit authority or power of attorney allowing them to do so. In this situation, the change must be accepted in writing by the buyer directly.
Conclusion
The correct answer is A, as it accurately reflects the legal process regarding offers and counteroffers in real estate transactions. The original offer was rejected when the seller excluded the stove, necessitating a written acceptance of the counteroffer from the buyer. All other options fail to recognize the requirements set forth in contract law regarding the acceptance of modifications to offers.