Contracts
A Florida real estate contract contains an 'escalation clause.' This means:
AThe price increases over time regardless of market conditions
BThe buyer will automatically increase their offer above competing offers up to a stated maximum✓ Correct
CThe commission escalates with each renegotiation
DThe interest rate escalates after the initial period
Explanation
An escalation clause in a purchase offer allows the buyer to automatically increase their offer by a specified increment above any competing offer, up to a stated maximum price. This is used in competitive multiple-offer situations.
Related Florida Contracts Questions
- Which of the following best describes a 'contingency' in a Florida real estate purchase contract?
- Under a Florida exclusive right to sell listing, the broker earns a commission if the property is sold:
- In Florida, what must be done for a contract modification to be binding on both parties?
- A Florida purchase contract includes a 'mortgage contingency.' If the buyer cannot obtain financing by the specified deadline, the buyer may:
- The Statute of Frauds in Florida requires real estate contracts to be:
- A buyer in Florida signs a contract but is 17 years old (a minor). This contract is:
- A buyer includes a home sale contingency in a Florida purchase contract. This contingency means:
- Under Florida's 'Parol Evidence Rule,' when a written real estate contract is complete and unambiguous:
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →