Maryland Real Estate License Practice Exam

A counter-offer is a response to an original offer in which the terms have been modified. When a counter-offer is made, it act as a rejection of the original offer and proposes new terms. Therefore, it effectively cancels the prior offer and creates a new negotiation scenario between the parties involved. This means that the original offer is no longer valid once a counter-offer is issued.

Understanding this process is crucial in real estate transactions, as it affects how negotiations take place. The idea is that a seller or buyer can modify the terms to reach an agreement that suits both parties, but this modification means that the original offer can no longer be accepted unless the party who made the counter-offer explicitly revokes their counteroffer and chooses to accept the original terms instead.