Final answer:
In a Colorado real estate transaction, when a counterproposal is issued, neither the buyer nor the seller should sign the original proposed contract. The correct option is that the original contract is not to be signed by either party, since the counterproposal replaces the original offer with new terms.
Step-by-step explanation:
When dealing with a Colorado real estate commission approved counterproposal, it is important to understand the nature of counterproposals in real estate transactions. A counterproposal essentially modifies the original offer, presenting alternative terms to the initial agreement proposed by the buyer or seller. Once a counterproposal is made, it revokes the original offer and requires the other party to review and agree to the new terms before proceeding. The critical aspect of a counterproposal is that it is a separate document that outlines the terms and changes that one party wants to make to the original contract.
Looking at the choices provided:
- A) It is not correct to say that a counterproposal should incorporate the terms of the listing agreement. The listing agreement is a contract between the seller and their agent, not with the buyer.
- B) It is unnecessary for a counterproposal to repeat all terms and conditions of the original proposed contract. A counterproposal only needs to outline the changes to the original offer.
- C) The original proposed contract should indeed not be signed by the seller once a counterproposal is made because it would mean accepting the initial terms, negating the counter.
- D) The original proposed contract is not to be signed by either the seller or buyer. This is the correct statement. Once a counterproposal is in play, the initial offer is void, and the new document (the counterproposal) is what needs to be agreed to and signed.
In summary, a Colorado real estate commission approved counterproposal alters the terms of the original offer and neither party should sign the original contract when a counterproposal is presented.