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Updates to RIAR Escalation Addendum

Are you confused about how to handle offers and purchase and sales agreements with competing with multiple escalation clauses?

The RIAR Forms Committee has added language to the Escalation Addendum to explain that multiple offers with escalation clauses will be compared on the net escalated price of each offer instead of the net base price.  These offers will continue to escalate until they reach each buyer’s cap.

As a reminder, the property still has to appraise unless the buyer has the means to pay cash.    Unless the buyer is independently wealthy, make sure to include a cap on how high the buyer is willing to increase his/her offer.

Questions?  Please contact the RIAR Legal Department at 401-432-5945 or email monica@rirealtors.org.

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