Contracts
What is an 'escalation clause' in a Kansas real estate purchase offer?
AA clause that increases the price if the seller makes repairs
BA clause that automatically increases the buyer's offer above competing offers up to a set maximum✓ Correct
CA clause requiring the price to increase with inflation
DA clause triggering foreclosure if payments are missed
Explanation
An escalation clause allows a buyer's offer to automatically increase above competing offers by a specified increment, up to a maximum price, helping buyers win in competitive Kansas markets.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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