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  • Form 35e. Escalation Addendum

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Form 35E Escalation Addendum Rev. 7/15 Page 1 of 1Copyright 2015 Northwest Multiple Listing Service ALL RIGHTS RESERVEDESCALATION ADDENDUM TO PURCHASE AND SALE AGREEMENTThe following is part of the.

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An escalation clause, or “escalator,” is a section in a real estate contract that states that a prospective buyer is willing to raise their offer on a home should the seller receive a higher competing offer.

They could include an escalation clause with their offer that states the amount they are willing to offer above other buyers, up to the maximum they're willing to spend. For this example, let's say that the buyer's escalation clause says they'll pay $5,000 more than any other buyer, up to a total of $315,000.

When that competing bid is made, the escalation clause automatically increases its own offer by a preset amount. A clause may or may not limit, or cap, the buyer's maximum bid. For the clause to be triggered, sellers need to prove there was another bona fide offer, Halverson says.

An escalation clause is a real estate contract, sometimes called an escalator, that lets a home buyer say: “I will pay X price for this home, but if the seller receives another offer that's higher than mine, I'm willing to increase my offer to Y price.”

In real estate, an escalation clause is a clause or addendum to a real estate contract that notes the buyer is willing to raise his or her offer price if the seller receives a higher competing offer.

Start With the Initial Purchase Price Offer. A real estate escalation clause should always start off with the initial offer. ... Write Details on Escalation Increments. Another key element of an escalation clause is the increments by which the offer will escalate. ... Include Your Maximum Purchase Price.

Your real estate escalation clause should indicate: The original purchase price offer. The increments by which the offer escalates (example: $5,000) The maximum purchase price - keep in mind your pre-approval letter, because the maximum price should not exceed this (or be prepared to make up the difference in cash)

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232