Contracts
An 'escalation clause' in a New Mexico purchase offer means the buyer agrees to:
AAutomatically increase the price above competing offers by a set increment, up to a maximum✓ Correct
BMatch any competing offer exactly
CReduce their offer if the appraisal comes in low
DExtend the closing date for each day over the deadline
Explanation
An escalation clause instructs the seller that the buyer will automatically increase their offer above any competing offer by a specified increment (e.g., $2,000 more than the next offer), up to a stated maximum price.
Related New Mexico Contracts Questions
- In New Mexico, a 'breach of contract' by a seller who refuses to close would entitle the buyer to which of the following remedies?
- An addendum to a New Mexico purchase contract is used to:
- A New Mexico purchase agreement includes a time-is-of-the-essence clause. This means:
- In New Mexico, an option contract gives the optionee the:
- Earnest money in a New Mexico purchase contract is best described as:
- A New Mexico purchase contract states 'closing on or before July 15.' The actual closing occurs on July 14. This is:
- A listing agreement in New Mexico is a contract between:
- Under the Statute of Frauds, real estate contracts in New Mexico must be:
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →