Contracts
In Michigan, an 'escalation clause' in a purchase offer allows the buyer to:
AReduce their offer if the property appraises below the asking price
BAutomatically increase their offer above any competing offers up to a specified maximum price✓ Correct
CExtend the closing date if needed
DDemand additional repairs from the seller
Explanation
An escalation clause provides that the buyer's offer will automatically increase by a set increment above any bona fide competing offer, up to a maximum price the buyer specifies. This is used in competitive Michigan markets to help buyers win bidding wars.
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