Do I have to disclose competing offers to trigger an escalation clause?
Most escalation clauses require proof of a bona fide competing offer to trigger the increment. This typically means providing a redacted copy of the competing bid. If you cannot or do not want to disclose competing offers, you can reject the escalation clause entirely and counter at a flat number. This avoids the disclosure requirement while still leveraging the information the buyer revealed about their ceiling.
This article provides general educational information only. It is not legal, tax, financial, insurance, compliance, housing, brokerage, or professional advice. Rules, tax rates, obligations, enforcement practices, and market conditions vary by property, building, contract, municipality, and jurisdiction, and they change. Sellers should consult a qualified attorney, CPA, or other appropriate professional before making decisions based on their specific situation.
From the seller playbook: Escalation Clause Strategy and the Maximum Cap Trap
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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