An Ohio purchase agreement includes an escalation clause that states the buyer will beat any competing offer by $2,000 up to a maximum of $350,000. The seller receives a competing offer for $340,000. Under Ohio practice, what is the buyer's offer price under the escalation clause?
Correct Answer
D) $342,000, beating the competing offer by the specified increment
Under the escalation clause, the buyer's offer increases to $2,000 above the competing offer, resulting in $342,000. This is below the $350,000 cap, so the escalation operates as intended. Escalation clauses in Ohio function as written in the contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
More Oh Specific Contracts Forms Questions
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Peter, an Ohio buyer, asks his agent about the difference between actual damages and liquidated damages. Under Ohio law, which statement correctly distinguishes the two?
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Lucy, an Ohio buyer, asks her agent about the statute of limitations for breach of a written real estate purchase agreement. Under Ohio law, how long does the buyer have to file a breach of contract lawsuit?
Megan, a first-time Ohio buyer, asks her agent what 'specific performance' means as a remedy for breach of contract. Under Ohio law, which description is correct?
- → Grace, a buyer in Ohio, wants to know the difference between rescission and breach of contract. Under Ohio law, what is rescission?
- → Allen, an Ohio buyer, believes the seller's agent made negligent misrepresentations about the property's condition during the sale. Under Ohio law, who may Allen pursue for damages?
- → Oliver, an Ohio buyer, wants to understand the concept of 'mutual rescission' in the context of his purchase agreement. Under Ohio law, what is mutual rescission?
- → Richard, an Ohio seller, breaches a purchase agreement. The buyer decides not to pursue the property but wants monetary compensation for expenses and losses. Under Ohio law, what type of remedy is the buyer seeking?
- → Tom, an Ohio buyer, refuses to close on a property after all contingencies have been satisfied and all deadlines have passed. Under Ohio contract law, what type of action has Tom committed?
- → Kevin, an Ohio buyer, discovers after closing that the seller fraudulently concealed a major foundation defect on the Residential Property Disclosure Form. Under Ohio law, what remedy can Kevin pursue?
- → Martha, an Ohio seller, provides a warranty deed to the buyer at closing. After closing, the buyer discovers an existing lien that was not disclosed. Under Ohio deed warranty law, what remedy does the buyer have?
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Tyler, an Ohio salesperson, is preparing an offer for his buyer on a property in Warren County. The buyer wants to include personal property items (washer, dryer, and refrigerator) in the purchase. Under Ohio practice, how should these items be addressed?
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Karen, an Ohio broker, receives a $10,000 earnest money deposit on Friday afternoon after her bank has closed. The next Monday is a federal banking holiday. Under ORC §4735.24, when is the latest Karen must deposit the earnest money?