Price Escalation Clause

1 Purchase Price. If seller receives a competing offer for the property prior to accepting this offer, with a net price greater than the net price of this offer, then the net price of this offer shall be increased to $1,000 more than the net price of the competing offer. In no event, however, shall the new purchase price of this offer exceed $xxx,xxx. The term ‘net price” means the stated purchase price (or the maximum price if the competing offer contains a price escalation clause) less any price adjustments such as credits to buyer for closing costs.

2. Competing offer. A competing offer must be a bona fide, arm’s length, written offer on OREF or similar forms, containing all material terms necessary for an enforceable agreement which (a) requires the full purchase price to be paid in cash at closing, (b) provides for closing no later than 60 days from the date of this offer; and (c) is not contingent on the sale of the buyer’s property. A competing offer may include other conditions, such as a  buyer’s pending sale of property contingency.

3. Seller’s acceptance. Seller’s acceptance and escalation of this offer shall not be effective unless it is accompanied by a complete copy of any competing offer used to escalate the purchase price, including any escalation provision.