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Rejection

DEFINITION

Refusing an offer.

EXPLANATION

A rejection is when one party in a transaction refuses the other party’s offer. A seller could reject a buyer’s initial offer, or a buyer may reject a seller’s counteroffer.

The person who is offering the property, the offeree, can refuse any offer based on any conditions. Rejection of a deal is very simple. To reject the buyer’s offer, the seller can either do nothing or inform the buyer of his or her decision. Commonly, the seller may respond by saying they want a higher price or more favorable conditions such as a faster closing date. The offer can also be rejected if the offeree sends a counter offer. A counter offer is a rejection of a buyer’s original offer with changes to the price of terms of the agreement. When a counter offer takes place, the original offeree becomes the offeror while the offeror becomes the offeree.

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