37. The property was listed for $100,000 and the buyer wrote an offer of $90,000. The seller countered $95,000 and the licensee called the buyer on the phone and was informed that $95,000 was acceptable. Do the parties have a binding purchase agreement?
Answer: C
No, the buyer must accept the counteroffer in writing.
For a binding purchase agreement to be established, the buyer's acceptance of the seller's counteroffer must be communicated in writing. Verbal acceptance is insufficient in real estate transactions, which typically require formal documentation to validate the agreement.
A) Yes, a meeting of the minds has been achieved.
While there may have been a verbal agreement between the buyer and seller, a mere meeting of the minds does not constitute a legally binding contract in real estate. A written acceptance is necessary to solidify the terms of the agreement, making this option incorrect.
B) No, the buyer had to offer exactly as listed to sell.
This option misinterprets the negotiation process in real estate. Buyers can negotiate offers below the listing price, and counters can be made. The buyer's initial lower offer does not invalidate their ability to reach an agreement based on the seller's counteroffer. Thus, this option is not accurate.
C) No, the buyer must accept the counteroffer in writing.
This option correctly highlights that for the agreement to be binding, the buyer's acceptance of the counteroffer must be documented in writing. Without this written confirmation, the transaction lacks the necessary legal framework required for enforceability.
D) Yes, so long as the seller's counteroffer is in writing.
While the seller’s counteroffer must be in writing to be valid, this option overlooks the necessity of the buyer's written acceptance as well. Without the buyer's written acceptance, even a written counteroffer from the seller does not establish a binding contract, making this option incorrect.
Conclusion
In summary, the correct answer is that the buyer must accept the counteroffer in writing to form a binding purchase agreement. While verbal agreements may indicate intent, they lack the legal standing required in real estate transactions. All other options fail because they either misinterpret the negotiation process or neglect the critical requirement of written documentation for acceptance.