Contracts
A Wyoming purchase contract with an 'escalation clause' means:
AThe price escalates automatically with inflation each year
BThe buyer's offer automatically increases above any competing offer by a specified amount up to a maximum price✓ Correct
CThe seller can increase the listing price at any time
DClosing costs escalate in proportion to the purchase price
Explanation
An escalation clause automatically increases the buyer's offer by a specified increment above any competing bona fide offer, up to a stated maximum price. These clauses are used in competitive Wyoming markets (like Jackson Hole) to help buyers win multiple-offer situations.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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