Contracts
An 'escalation clause' in a buyer's offer:
AAutomatically increases the purchase price to beat competing offers, up to a stated maximum✓ Correct
BAllows the seller to increase the asking price after acceptance
CRequires the buyer to pay all closing costs
DTies the purchase price to the appraised value
Explanation
An escalation clause in a purchase offer automatically increases the buyer's offer by a specified increment above any competing offer, up to a stated maximum price. This is used in competitive markets to help buyers win bidding situations.
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