Definition
A contract provision automatically increasing a buyer's offer above competing offers up to a stated maximum.
Example
The escalation clause raised the offer in $2,500 increments to a cap of $565,000.
Related terms
Frequently asked questions
What does Escalation Clause mean in real estate?
A contract provision automatically increasing a buyer's offer above competing offers up to a stated maximum.
How is Escalation Clause used in practice?
The escalation clause raised the offer in $2,500 increments to a cap of $565,000.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.