Contracts
In Illinois, an escalation clause in a purchase offer allows:
AThe seller to increase the asking price after receiving an offer
BThe buyer's offered price to automatically increase above competing offers up to a specified maximum✓ Correct
CThe property taxes to escalate with the sale price
DThe interest rate to adjust based on market conditions
Explanation
An escalation clause is a provision in a buyer's offer that automatically increases their offer price above any competing offers by a specified increment, up to a maximum cap. For example, a buyer might offer $300,000 and include an escalation clause that says they will beat any other bona fide offer by $2,000 up to a maximum of $325,000. Escalation clauses are common in competitive Chicago-area markets.
Related Illinois Contracts Questions
- An Illinois lease that runs from month to month may be terminated by the landlord by providing:
- In Illinois, the attorney review period for a residential real estate contract is typically:
- An 'as-is' clause in a real estate contract means:
- A real estate contract in Illinois is legally binding when:
- Specific performance is a legal remedy in real estate that requires:
- Earnest money in a real estate transaction serves as:
- Liquidated damages in a real estate contract refer to:
- Under Illinois contract law, which of the following is sufficient 'consideration' in a real estate purchase agreement?
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →