Contracts
A buyer in Bend, Oregon submits an offer on a property that includes an escalation clause. An escalation clause means:
AThe purchase price will increase automatically based on inflation
BThe buyer's offer will automatically increase above competing offers by a set increment, up to a maximum price✓ Correct
CThe seller must notify the buyer of all competing offers
DThe property price escalates if the buyer waives the inspection contingency
Explanation
An escalation clause states that the buyer will pay a set amount above any competing bona fide offer, up to a maximum price. It is used in competitive markets to help buyers win in multiple-offer situations without initially over-offering.
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