Contracts
In a West Virginia real estate transaction, an 'escalation clause' in a buyer's offer means:
AThe purchase price automatically increases each year after closing
BThe buyer will increase their offer by a specified increment above any competing offer, up to a maximum price✓ Correct
CThe seller can raise the price during the inspection period
DThe buyer's agent's commission increases if the transaction closes above the list price
Explanation
An escalation clause automatically increases the buyer's offer by a set amount over any competing offer, up to a specified maximum. It is used in competitive markets to help buyers win bidding wars without overpaying unnecessarily.
Related West Virginia Contracts Questions
- A 'contingency' in a West Virginia real estate contract means:
- Earnest money deposited with a West Virginia broker in connection with a purchase contract is:
- A valid real estate contract in West Virginia requires all of the following EXCEPT:
- A West Virginia inspection contingency typically gives the buyer the right to:
- An 'as-is' clause in a West Virginia purchase contract means the buyer is purchasing the property:
- In West Virginia, if a seller accepts a buyer's offer and then receives a better offer, the seller:
- Under West Virginia law, a real estate contract may be rescinded by mutual consent of the parties, which means:
- In West Virginia, a contract for the sale of real estate must be in writing to be enforceable under:
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