Question

A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if

1. it satisfies or exceeds all terms included in the counteroffer.
2. the owner withdraws the counteroffer before it is accepted.
3. the owner gives the first buyer notice that another offer was received and an opportunity to revise the bid.
4. the first buyer is informed, in writing, of the owner's intent to accept another offer.

Answer 1

2, the owner withdraws the counteroffer before it is accepted.

Step-by-step explanation:

When an offer is met with a counteroffer, until the counteroffer is accepted, there is always still the chance to withdraw the counteroffer. This usually happens when there is a new development as regards the offer.

From the above question, it can be seen that the owner of the property responded with a counteroffer to the buyer's offer. Now, while the counter offer is being considered by the buyer, the owner gets a better offer and as such needs to withdraw the counteroffer given to the buyer.

Since there hasn't been any positive response to signify interest or agreement to the counteroffer, the counteroffer can still be withdrawn by the buyer as there is no contract yet.

In the event that, the buyer accepts the counteroffer of the owner, the new offer will have to be forgone as there is an agreement already.

Cheers.