Contracts
An 'escalation clause' in a Pennsylvania buyer's offer allows the buyer to:
AExtend the closing date if needed
BAutomatically outbid competing offers by a set increment up to a maximum price✓ Correct
CReduce the offer price if the appraisal comes in low
DEscalate the interest rate if the market changes
Explanation
An escalation clause in a buyer's offer automatically increases the buyer's offer by a specified increment above any competing offer, up to a stated maximum. Used in competitive Pennsylvania markets (Philadelphia, Pittsburgh), escalation clauses let buyers stay competitive without unlimited price commitment.
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