In a scenario where a seller receives multiple offers, under what condition can the seller revoke a counteroffer?

The correct understanding of this situation revolves around the principles of contract law as it applies to real estate transactions. A counteroffer, by nature, is an offer that modifies the terms of the original offer made by a buyer. This means the seller is essentially placing a new offer on the table.

A seller can revoke a counteroffer as long as it has not been accepted by the buyer. Until the buyer communicates acceptance of the counteroffer, the seller retains the right to rescind it, regardless of whether the seller has signed it or not. This flexibility allows the seller to explore better offers or negotiate terms with other potential buyers if they receive a more favorable proposal.

The other options provided do not align with these principles: the seller's ability to revoke a counteroffer is not dependent solely on whether the first buyer is present or if the seller simply changes their mind; rather, it hinges on the status of acceptance. Once the buyer accepts the counteroffer, it creates a binding agreement, and the seller can no longer revoke it.