Contracts
A Massachusetts buyer uses an escalation clause in a multiple-offer situation. The seller must provide proof of the competing offer before the escalation clause can be triggered. This protection ensures:
AThe buyer pays less than their maximum
BThe buyer is not manipulated into paying more than necessary through fabricated competing offers✓ Correct
CThe seller discloses all offers to all buyers
DThe process is transparent for the MLS
Explanation
The requirement for proof of a bona fide competing offer in an escalation clause scenario protects the buyer from a seller or agent inventing competing offers to force the buyer to their maximum price.
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