Contracts
In New York, an 'escalation clause' in a purchase offer means the buyer is willing to:
AAccept a lower price if the market falls
BAutomatically increase their offer by a set increment above competing offers, up to a stated maximum✓ Correct
CEscalate legal proceedings if the offer is rejected
DAllow the seller to increase the asking price after acceptance
Explanation
An escalation clause (common in competitive markets) allows the buyer to automatically beat any competing offer by a specified increment, up to a stated maximum price, to increase their chances of winning a bidding war without overpaying unnecessarily.
Related New York Contracts Questions
- The 'attorney review' or 'attorney approval' contingency commonly included in New York residential contracts allows:
- What is the 'attorney review' period in a New York real estate contract?
- An 'as-is' clause in a New York purchase contract:
- A 'right of first refusal' in a lease or purchase agreement gives the holder the right to:
- A New York real estate contract that includes a 'mortgage contingency' clause protects the:
- A walk-through inspection before closing in New York allows the buyer to:
- Under New York law, a real estate contract signed by a person who has been adjudicated legally incompetent is:
- An option contract in real estate gives the optionee the:
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →