Question

If there is a counter offer to the original Earnest Money Receipt and Offer to Purchase, what are the requirements for the counter offer? (Select all that apply)

1) It is necessary to have a new Earnest Money Agreement (REPC) prepared
2) It must be signed by both buyers and sellers
3) It is only approved by the sales agent
4) It may be verbal
5) It must be in writing

Answer 1

The requirements for a counter offer in a real estate transaction are that it must be in writing, signed by both parties, and may require a new Earnest Money Agreement. Hence, option (1), (2) and (5) are correct.

Step-by-step explanation:

The requirements for a counter offer to the original Earnest Money Receipt and Offer to Purchase are as follows:

1. It must be in writing: A counter offer must be in writing to be valid. Verbal counter offers are not sufficient.
2. It must be signed by both buyers and sellers: A counter offer should have the signatures of both the buyers and the sellers involved in the transaction.
3. It is necessary to have a new Earnest Money Agreement (REPC) prepared: A counter offer often includes modifications or changes to the original agreement, so a new REPC should be prepared to reflect these changes.

Therefore, the correct answers are option (1), (2) and (5).