About the Price Escalation Addendum
The Price Escalation Addendum to Agreement of Sale (Form PEA) allows buyers to automatically increase their purchase price in an offer by a set increment and up to a set maximum amount when there are competing offers for a property.
Using the Price Escalation Addendum
In some cases, buyers are willing to outbid a competitor in order to make the highest offer for a property. Submit Form PEA with a fully completed Agreement of Sale as an additional term of the agreement to increase the buyer’s initial offer, up to a certain amount, in case of multiple buyers.
Latest Content
-
The Price Escalation Addendum: What Realtors® Need to Know
- June 23, 2023
- 5 min. read
The Price Escalation Addendum (Form PEA) allows buyers to essentially “pre-negotiate” increases to their offer by telling sellers that they are willing to beat competing offers by a certain amount in order to win the property.
-
Best of the Legal Hotline: Frequently Asked Questions on Four Standard Forms
- June 22, 2021
- 5 min. read
PAR’s Legal Hotline attorneys held a webinar yesterday discussing frequently asked questions on standard forms, specifically, Seller’s Property Disclosure, Appraisal Contingency Addendum, Price Escalation Addendum and COVID-19 Property Access Notice.
-
Best of the Hotline: Price Escalation Addendum
- September 4, 2020
- 4 min. read
The Price Escalation Addendum (Form PEA) is one of the most misunderstood in the PAR forms library. You should review PAR’s guidelines for the form before using it, but let’s review a couple of the most common questions/complaints/misconceptions that we hear on the PAR Legal Hotline.
