A broker has listed a property for $225,000. An offer of $210,000 contingent upon inspection comes in the first week and the seller accepts it. Another offer of $205,000 comes in the second week. The seller accepts it as a secondary offer contingent upon the termination of the first offer. The first offeror demands the seller spend $5,000 in repairs before going through with the purchase. The seller may do any of the following EXCEPT
The seller may ignore the demand and sell the property to the second offeror.
The seller cannot ignore the first offeror's demand for repairs while still holding a valid contract with them. Since the first offer is contingent upon inspection, any demands made by the first offeror must be addressed before the seller can consider the second offer.
The seller has the option to agree to the repairs requested by the first offeror, allowing the transaction to proceed as per the terms of the accepted offer. This is a legitimate course of action since the seller is bound to honor the terms of the first contract.
While the seller can refuse to make repairs, they must then inform the first offeror of this decision. If the seller proceeds without addressing the first offeror's demands, they risk breaching the contract and may face legal consequences.
The seller can terminate the first agreement in writing, especially if they wish to pursue the second offer. This is a valid action as long as the seller follows proper procedures to formally cancel the first contract.
This choice is incorrect because the seller cannot simply ignore the first offeror's demand for repairs while still being bound by the contract. Ignoring the demand would constitute a breach of the first agreement, potentially leading to legal issues.
In real estate transactions, parties must adhere to the terms of accepted offers. The seller's options include agreeing to repairs, refusing them with the potential to breach the contract, and properly terminating the first agreement to pursue the second offer. However, ignoring the first offeror’s legitimate demand compromises the contractual obligations and is not permissible. This principle underscores the importance of maintaining clear communication and compliance with contractual terms in real estate dealings.
Related Questions
View allThe terms of a mortgage call for a borrower to pay $3,200 in loan disc...
The purpose of private mortgage insurance is to
A seller refuses to honor a sales agreement. The buyer could seek spec...
Which of the following statements correctly describes a standard featu...
A seller has listed a home with a broker for $112,000. the seller is l...
Related Quizzes
View allAlabama Property and Casualty License Practice Exam
California Real Estate Practice Final Exam Answers
PSI National Real Estate License Exam Prep
Colorado State Real Estate License Exam
Free Illinois Real Estate Exam Practice Test
Illinois Real Estate Broker Exam Prep
Illinois Real Estate Exam Study Guide PDF
Illinois National Real Estate Exam
Illinois Real Estate State Exam Questions
Maryland Real Estate Salesperson Exam Study Guide
- ✓ 500+ Practice Questions
- ✓ Detailed Explanations
- ✓ Progress Analytics
- ✓ Exam Simulations