Acceleration Clause:
- This is used by homebuyers in competitive real estate markets to automatically increase their offer above competing bids up to a specified maximum amount.
- When submitting an offer on a property, the buyer includes an escalation clause that states they are willing to pay a certain amount above the highest competing offer, up to their maximum limit.
- This allows the buyer to remain competitive without necessarily offering the maximum amount upfront, adjusting their offer based on competing bids.