Contracts
An escalation clause in a buyer's offer allows the offer price to:
AAutomatically reduce if the property doesn't appraise
BAutomatically increase in set increments above competing offers, up to a stated maximum✓ Correct
CChange based on inflation indices
DAutomatically match any seller counteroffer
Explanation
An escalation clause allows a buyer's offer to automatically increase above competing offers by a specified increment, up to a maximum cap. This is used in competitive multiple-offer situations to remain competitive without blindly overbidding.
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