A buyer makes an offer to purchase a property with a price of $500,000, but the seller responds with a counteroffer of $525,000. What is the effect of this counteroffer on the original offer?
A. It accepts the original offer
B. It rejects the original offer and creates a new offer
C. It amends the original offer
D. It has no effect on the original offer
Answer
Answer: B
A counteroffer rejects the original offer and creates a new offer, which the original offeror can then accept, reject, or make another counteroffer.
