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.

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