Hello Truliauser and thanks for your post.

As with all questions involving contract law, it's best to consult with a qualified real estate attorney in your area, who can review your files and determine if a binding contract was created. However, here's my unlegal opinion....

Typically, a contract is "made" when there is "offer" and then "acceptance" or "agreement" on the part of the person being sent the offer. In most states, offer and acceptance concerning real estate must be in writing or by a written offer made by the buyer and sent to the seller, and then accepted and acknowledged by seller to sell the home to you. This is a valid agreement.

However, if you make an offer, and the seller decides to send you a counter offer, then there is no contract. You made an offer, which was, essentially rejected, in favor of a counter provided by the seller. At this point, you can decide not to accept the counter and move on, or submit a second counter offer to the seller reiterating that you want to have certain conditions or issues addressed. This second counter is your rejection of the seller's offer, and the seller now has the choice to walk away. Until both parties--buyers and sellers--agree to a counter and specifics and affix their signatures to a contract (and to the counters) stating the same, there is no agreement. Talk with your agent to ensure that you are responding on time to any counters and do not miss any opportunities to reassert your position with modifications.

Remember, the art of the "counter offer" is NOT to ask for all of your original conditions again, but to find a happy "middle ground" between what you want and what the seller would like to have. Again, talk with an attorney for an explanation of contract laws in your state, and work with a qualified Realtor who can help explain the process of in detail to you.

Good luck!!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA

Web Reference: http://gracemorioka.areaproealty.com