Contracts
A New Mexico purchase agreement includes an escalation clause. This clause allows the buyer to:
ABack out if the price increases
BAutomatically increase their offer above competing offers up to a stated maximum✓ Correct
CNegotiate repairs after inspection
DExtend the closing date without penalty
Explanation
An escalation clause automatically raises the buyer's offer by a set increment above any competing bona fide offer, up to the buyer's stated maximum price — useful in competitive Albuquerque or Santa Fe markets.
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