PSI New Jersey Real Estate State Practice Exam

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What happens if a seller has an exclusive right to sell agreement and receives an offer 20% below the list price?

The seller must accept the offer
The seller can choose to counter or reject the offer
The broker must re-evaluate the listing price
The buyer has no rights in this situation

The correct answer is: The seller can choose to counter or reject the offer

In an exclusive right to sell agreement, the seller retains significant control over the transaction, including the ability to evaluate offers. When a buyer submits an offer that is 20% below the list price, the seller is not obligated to accept it. Instead, the seller has the option to counter the offer, potentially proposing a higher price that reflects their expectations, or to reject the offer entirely. This flexibility allows the seller to negotiate terms that align with their financial goals and market conditions. The other options suggest actions that do not reflect the seller's autonomy in this situation. For instance, the seller is not mandated to accept any offer, nor is the broker required to re-evaluate the listing price solely based on a low offer. Furthermore, the buyer's rights in this scenario pertain to the offer they have submitted, but it does not mean they have any entitlement to the property should the seller choose not to engage with the offer. This highlights the seller's position and decision-making power in a real estate transaction under an exclusive agreement.