Contracts

An escalation clause in a purchase offer automatically:

AReduces the buyer's offer if the property fails inspection
BIncreases the buyer's offer by a specified increment above competing offers, up to a stated maximum✓ Correct
CRequires the seller to reduce the price if it doesn't appraise
DExtends the closing date by 30 days if financing is delayed

Explanation

An escalation clause automatically increases the buyer's offered price by a set amount above any competing offer received, up to a specified maximum, helping the buyer win in a competitive multiple-offer situation.

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