Purchase Escalation Addendum to Contract

Starting on July 22, 2021, the Florida Realtors will make available an Escalation Addendum to Contract. This form comes at the perfect time in which the current real estate market, the increase in demand, and the lack of inventory have forced most Buyers to a competitive offer situation for the best and highest offer.

Before the introduction of this addendum Sellers and Buyers relied on a very informal way to enter into a multiple offer deal. Now, this form formalizes the pricing and conditions that may govern a possible offer in case of entering into a competing deal.

This new addendum adds items as:

  • The original contract of the offer.
  • The type of contract used in the offer.
  • Agreement to increase the Purchase Price if there is a Bona Fide offer from a Competing Buyer and that is a Competing Offer.
  • The Escalation Amount
  • A Maximum Purchase Price
  • The options of paying for the Escalation Amount at closing or if the Buyer would seek financing for the applicable Escalation Amount.

Lastly, the addendum includes a very important clause that improves the fairness and clarity of the competing offers. “Seller shall provide a copy of the Competing Offer (with competing buyer’s identification redacted) at or prior to time Seller accepts or counters Buyer’s offer in writing, In the event, Seller fails to timely furnish Buyer with a copy of the Competing Offer, the Purchase Price shall not be increased by applicable Escalation Amount.”

This addendum is available through Form Simplicity, Dotloop, or any other licensed vendor.

  1. How to Complete Escalation Addendum to Contract (automatic download)

  2. Q&A on Escalation Addendum to Contract

The How to Complete Escalation Addendum to Contract the Q&A Escalation Addendum Contract above are courtesy of Florida Realtors®