Massachusetts Real Estate License Practice Test

Which of the following can terminate an offer?

1. Inspection results

2. Death of the seller

3. Market fluctuations

4. Acceptance of a counteroffer

The correct answer is: Death of the seller

The termination of an offer can occur under various circumstances, and when it comes to the death of the seller, this is a definitive way to terminate an offer. In real estate transactions, an offer is personal to the parties involved. If the party who made the offer (the seller, in this case) passes away, the offer is generally considered void. This is because the deceased seller is no longer able to fulfill the terms of the offer or engage in a contractual agreement. While other options might influence the circumstances surrounding an offer, they do not directly lead to its termination. For instance, inspection results may lead a buyer to withdraw their interest, but they do not automatically nullify the offer unless explicitly acted upon. Similarly, market fluctuations can affect the desirability or pricing of the property, but they do not legally terminate an existing offer. The acceptance of a counteroffer simultaneously cancels the original offer, but this is distinct from the original offer being terminated due to the death of the seller.