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Hi I'm Sean Reynolds the owner and designated managing broker of Summit properties Northwest and this is a quick how-to or overview video on form 35e and that is the escalation addendum to the purchase and sale agreement let's jump right in okay so at the top you're going to put the purchase and sale agreement date you're going to enter in buyer number one buyer number two seller number one seller number two address city state and zip of the property that this is being written regarding, and you've basically got you have four items to contend with here you've got kind of a general notice to buyer and then specifically number one the purchase price and that's kind of the main guts of this form under the purchase price if the seller receives a competing offer for the property prior to accepting this offer with a net price equal to or greater than that price of this offer then the net price of this offer shall be increased to however many thousands of dollars it's going to go up whatever you choose there that could be five hundred dollars it could be fifteen hundred dollars could be five thousand could be ten thousand whatever you determined is the best strategy in increments to meet to beat the next highest offer and that's increased to whatever it is more than that price of the competing offer in no event however show the new purchase price of this offer exceed this amount right here, so that is your cap so if you are starting at 500 thousand maybe your buyers don't want to exceed five fifty or five seventy-five you would put that number in right here that's the cap, so the first blank is the increments that you're willing to escalate the offer up the second blank is the cap of the sales price that you are willing to pay the highest end price that you're willing to pay and then if the other offer goes beyond that then you're out, and they get it all right there is a competing offer clause that's number two competing offer must be a bona fide arms-length written off or on MLS or similar forms containing all material terms necessary for an enforceable agreement which requires the full purchase price to be paid in cash at closing B provides for closing no later than and the standard default there are 60 days so if you want something other than 60 days as the for the terms of the other transaction you're competing with got to put that in there and that is really about it, you fill out the worksheet section down below once you know the purchase price of the competing offer you fill that in but until then you basically have your buyers initial date and send this in as part of your purchase and sale agreement and don't forget to include this on your main form as one of the additional forms where you itemize all the forms get form 35e in there as well all right thanks so much for watching this video if you found it helpful love to have you subscribe to our channel hit the like button for this video or hit the notification bell we create videos all the...
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