A seller listed their property for $700,000. A buyer submits an offer for $680,000. The seller responds with a counteroffer for $695,000, with an expiry of 8:00 PM the next day. The buyer then sends a second counteroffer for $690,000, to expire at noon the following day, which is received by the seller’s agent at 10:00 AM. What is the status of the seller’s $695,000 counteroffer?

Question: A seller listed their property for $700,000. A buyer submits an offer for $680,000. The seller responds with a counteroffer for $695,000, with an expiry of 8:00 PM the next day. The buyer then sends a second counteroffer for $690,000, to expire at noon the following day, which is received by the seller’s agent at 10:00 AM. What is the status of the seller’s $695,000 counteroffer?

Answer options: ✅ It is terminated by the buyer's subsequent counteroffer.

• It remains open until 8:00 PM the next day.
• It is binding on the buyer once the initial counter expires.
• The seller is obligated to accept the $690,000 counteroffer.

Correct answer: It is terminated by the buyer's subsequent counteroffer.

Explanation: A counteroffer inherently rejects the previous offer or counteroffer. When the buyer sent their second counteroffer for $690,000, it effectively rejected and terminated the seller's $695,000 counteroffer, as per basic contract law principles.