Those economic data should bode well for commercial real estate, which is often viewed as a hedge against inflation due to the fact that leases
include escalation clauses that often mimic changes in the Consumer Price Index.
Your agent might suggest
you include an escalation clause which effectively says if there is another offer better than yours, you're willing to pay $ 5,000 more than the top offer - without even knowing what the top offer is.
You know who really loves
including an escalation clause in a purchase offer?
But suppose the second buyer offered $ 550K but
included an escalation clause that states they'll beat any other offer by $ 2,000.
Not exact matches
This
includes the «clear as mud» direction from RECO that the
escalation clause spawned.
This
includes the parties to the agreement, premises description, lease term, rental,
escalation rate, usage
clause and the residence of the parties.
Because every transaction is different, we recommend that your buyer clients carefully consider the advantages and disadvantages of using an
escalation clause, and to always consult with an attorney before
including one in an offer.
Even if buyer Jane
includes a cap or maximum price in her
escalation clause, the seller agent can push Jane to her maximum price because Jane has to take their word for it - there is no obligation for the seller's agent to retain a copy of the competing offer (and recall that the «Offer Summary Document» does not require the recording of offer price information).
An
escalation clause is a term that is
included in a buyer's offer that allows the buyer to automatically increase his or her offer to a certain amount.