Georgia Real Estate Salesperson Practice Exam

What happens when a buyer submits a signed offer that the seller modifies before accepting?

1. The original offer remains valid

2. The original offer becomes a counter offer

3. The seller can ignore the buyer's offer

4. The buyer must submit a new offer

The correct answer is: The original offer becomes a counter offer

When a buyer submits a signed offer, it represents a clear intention to enter into a contract under the specified terms. If the seller makes any modifications to that offer prior to accepting it, the act of making those modifications legally transforms the original offer into a counteroffer. This counteroffer means that the seller is proposing different terms, which the buyer would then need to accept, reject, or modify further in response. This process aligns with the principles of contract law, where an offer can only be accepted in its original form. Any changes made to an offer by the offeree (in this case, the seller) constitutes a counteroffer rather than an acceptance. Therefore, the original offer loses its validity when the seller modifies it, as it indicates a new set of terms rather than agreement to the initial proposal. The buyer must then consider the new terms presented in the counteroffer and decide how to proceed. This mechanism ensures clarity and mutual agreement on any final transaction terms between the buyer and seller.