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?

While it may seem that a mutual agreement exists based on verbal communication, real estate contracts typically require that acceptance be documented in writing. A verbal agreement does not satisfy the legal requirements for a binding contract in this context.

This option misinterprets the negotiation process. The buyer's initial offer of $90,000 and the seller's counteroffer of $95,000 indicate that the seller is willing to negotiate. Accepting a counteroffer does not require the buyer to match the original listing price; rather, it involves agreeing to the terms proposed in the counteroffer.

While it is important for counteroffers to be in writing, this choice overlooks the necessity for the buyer’s acceptance to also be documented. A binding contract requires both the counteroffer and the acceptance to be recorded in writing to be enforceable.