Question

​The seller has entered into an exclusive right to sell agreement with Terry Hill. Ms. Hill presents the seller with an offer to purchase which is 20% less than the list price. Which of the following.

A. The seller is obligated to pay Ms. Hill a commission or the offer price if the seller rejects the offer.
B. The seller is under no obligation to accept the offer or make a counteroffer.
C. The seller has 72 hours to submit a counteroffer or else the offer is considered to be accepted.
D. The seller is obligated to make a counteroffer to the buyer if the offer is unacceptable.

Answer 1

The seller is not obligated to accept an offer or make a counteroffer based on an exclusive right to sell agreement, and thus answer B is correct. Despite the offer being presented, the seller retains the right to reject it without any mandatory requirement for providing a counteroffer.

Step-by-step explanation:

The correct answer is B. The seller is under no obligation to accept the offer or make a counteroffer. In an exclusive right to sell agreement, the seller has agreed to work with a specific real estate agent or broker during the term of the agreement. However, this does not require the seller to accept any and all offers presented by the agent. The seller retains the right to reject an offer for any reason, and there is no legal requirement for the seller to submit a counteroffer. The exclusive right to sell agreement does guarantee a commission to the broker if the property is sold within the terms of the agreement, but the seller has no obligation to accept an unsatisfactory offer.