Contracts

An escalation clause is a buyer-initiated provision that automatically increases their offer by a specified amount if a higher, bona fide competing offer is received. This helps the buyer stay competitive without overpaying, unlike a seller-initiated price increase or a provision that simply extends the closing date.

A listing agreement is an employment contract that authorizes a broker to find a buyer for a seller's property, establishing an agency relationship between these two parties. It is not a contract between the buyer and seller, which is instead known as a purchase agreement.

A listing agreement is an employment contract that authorizes a broker to find a buyer for a seller's property, establishing an agency relationship between these two parties. A diagram for this topic isn't available yet — the worked example below walks the same reasoning step by step.

• !Option A is incorrect because the buyer is not legally obligated to go through with the transaction.

Answer each from memory — you'll see instantly whether you're right and why.

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