Wisconsin Real Estate Sales Practice Exam

Which document is necessary to formally reject an offer and present a new one?

1. Counter Offer Form

2. Amendment to Offer

3. Rejection Notice

4. New Proposal Form

The correct answer is: Counter Offer Form

A Counter Offer Form is necessary to formally reject an offer while simultaneously presenting a new one. In real estate transactions, a counter offer occurs when the original offer is modified, which requires the seller or the party receiving the offer to express their counter terms clearly. By utilizing a Counter Offer Form, the original offer is effectively rejected, and the new terms are laid out in a clear manner that the other party can consider. In this situation, it's crucial to use the correct form, as a Counter Offer Form serves to document both the rejection of the initial terms and the introduction of new terms into the negotiation process. This maintains clarity and ensures both parties have a clear understanding of the current status of the offer. While other options might pertain to offer management in specific contexts, they do not fulfill the requirement of formally rejecting an existing offer in favor of a new one in the same manner that a Counter Offer Form does. An Amendment to Offer is generally used to modify an already accepted offer rather than reject it. A Rejection Notice would formally inform the other party of the rejection but would not introduce new terms. A New Proposal Form implies a fresh offer rather than an adjustment to an existing one. Thus, the Counter Offer Form is the most appropriate and effective document