What is the difference between a purchase agreement and a counteroffer in NY?

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Multiple Choice

What is the difference between a purchase agreement and a counteroffer in NY?

In NY real estate negotiations, a purchase agreement is a binding contract because once both sides sign and deliver it, they’re legally committed to the stated terms, including price, contingencies, and deadlines. A counteroffer works differently: it rejects the original offer and presents new terms, effectively starting a fresh offer from the party who made the counter. Until that counteroffer is accepted, there’s no binding contract on either side. If the other party accepts the counteroffer, a binding agreement is formed on those terms; if not, negotiations continue and the original terms are no longer in effect.

In NY real estate negotiations, a purchase agreement is a binding contract because once both sides sign and deliver it, they’re legally committed to the stated terms, including price, contingencies, and deadlines. A counteroffer works differently: it rejects the original offer and presents new terms, effectively starting a fresh offer from the party who made the counter. Until that counteroffer is accepted, there’s no binding contract on either side. If the other party accepts the counteroffer, a binding agreement is formed on those terms; if not, negotiations continue and the original terms are no longer in effect.

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