A buyer submits a written offer on a Las Vegas home for $420,000. The seller crosses out the price, writes in $435,000, initials the change, and signs the document. The seller's agent delivers this document to the buyer's agent. Which of the following best describes the legal status of this transaction?
Correct Answer
C) The seller has made a counteroffer, which terminates the original offer and gives the buyer the right to accept, reject, or counter
Under Nevada contract law, when a seller modifies any material term of the buyer's offer — such as the purchase price — and returns it, this constitutes a counteroffer, not an acceptance. A counteroffer operates as a rejection of the original offer and simultaneously creates a new offer. The original offer is terminated by operation of law, and the buyer (now the offeree) may accept, reject, or submit another counteroffer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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