Contracts

In South Carolina, what is an 'escalation clause' in a real estate offer?

AA clause that increases rent annually
BA clause that automatically increases the buyer's offer up to a maximum amount if competing offers come in higher✓ Correct
CA clause requiring price renegotiation if the appraisal comes in low
DA clause that increases the earnest money if the seller gets multiple offers

Explanation

An escalation clause allows a buyer's offer to automatically increase by a set amount above any competing offer up to a stated maximum. It is used in competitive markets to make an offer more competitive without overpaying unnecessarily.

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