Contracts
A North Dakota home sale contract includes an 'escalation clause' that allows the buyer to:
AIncrease the list price of the home during negotiations
BAutomatically increase their offer above any competing offers up to a specified maximum✓ Correct
CEscalate the dispute to binding arbitration
DEscalate the timeline for closing
Explanation
An escalation clause automatically increases a buyer's offer by a specified amount over competing offers up to a stated maximum price. It is used in competitive markets to improve a buyer's odds without overpaying unnecessarily.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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