New Jersey Real Estate Practice Exam Practice Question
A seller places a property on the market for sale at a certain price. A buyer sees the property and makes a written offer to purchase that is 90% of the asking price. The seller rejects that offer, but will accept an offer of 95% of the original asking price. The buyer rejects that counteroffer. The original offer is
Correct Answer: A
Rationale: The original offer is rescinded because the seller's rejection of the initial offer effectively cancels it. When an offer is rejected, it cannot be accepted later unless it is renewed.
Option B, "null and void," suggests that the offer was never valid, which is incorrect; the offer was valid until it was rejected.
Option C, "irrevocable," implies the offer would remain open despite the seller's rejection, which is not the case here.
Option D, "binding," indicates that the offer would create a legal obligation, but since it was rejected, it no longer holds any binding effect.
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