Under the terms of a land contract, the buyer is entitled to an executed deed to the property upon

making final payment to the seller.

acceptance of the purchase offer.

taking possession of the property.

making final payment to the seller.

Virginia Real Estate Practice Exam

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Question 1

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?

Your Answer: Option(s)

Correct Answer: Option(s) A

Rationale

The original offer was rejected and the seller's counteroffer must be accepted in writing.

In this scenario, the initial offer was modified by the seller's decision to exclude the stove, which constitutes a counteroffer. A counteroffer effectively rejects the original offer and must be accepted in writing to create a valid contract, as oral agreements regarding changes to real estate contracts typically do not hold legal weight.

A) The original offer was rejected and the seller's counteroffer must be accepted in writing.
This statement accurately reflects the legal principles involved in contract law. When the seller accepted the purchase price but modified the terms by excluding the stove, it created a counteroffer. The original offer is no longer valid, and the new terms must be formally accepted by the buyer in writing to establish a binding agreement.

B) Neither the seller nor his licensee has a right to make any changes to the original offer.
This choice is incorrect because the seller has the right to modify the terms of the original offer, which constitutes a counteroffer. The seller's licensee acts on behalf of the seller in making these changes and communicating them to the buyer's licensee.

C) The offer has been signed and accepted by all parties and creates a valid contract.
While the seller signed the counteroffer, the buyer did not formally accept the modified terms in writing. Therefore, there is no valid contract yet, as the acceptance of a counteroffer must be documented to be enforceable.

D) The buyer's licensee can sign the change regarding the stove on behalf of the buyer.
This statement is misleading because the buyer's licensee cannot unilaterally sign for the buyer without explicit authority. Any acceptance of the counteroffer must come directly from the buyer and should be documented in writing.

Conclusion
In summary, the acceptance of the seller's counteroffer regarding the stove must be documented in writing to create a valid contract. The original offer was rejected when the seller modified its terms, necessitating formal acceptance by the buyer. This highlights the importance of written agreements in real estate transactions to ensure clarity and enforceability of the contract terms.

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The original offer was rejected and the seller's counteroffer must be accepted in writing.

Making final payment to the seller entitles the buyer to an executed deed to the property under a land contract.

Planned unit development zoning is also termed downzoning.

Assessor's value is not essential for preparing a listing presentation for comparable homes.

Fraud.

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The original offer was rejected and the seller's counteroffer must be accepted in writing.

Making final payment to the seller entitles the buyer to an executed deed to the property under a land contract.

Planned unit development zoning is also termed downzoning.

Assessor's value is not essential for preparing a listing presentation for comparable homes.

Fraud.

Free Preview Ended

Unlock Full Access

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