NEW CIREX LISTINGS


CIREX Covers for 2018


To reserve your covers call 608-345-2880


Greater Madison Area July 2018 Asking Lease Rates


Office­Rates­ East:­$12.68 Central:­$18.44 West:­$14.68


Offer to Purchase — Contingencies


QUESTION: The agent has a listing where the seller has an accepted primary offer to purchase. The property is still being marketed in hopes the seller can maybe get a secondary offer or more than one secondary offer. The seller received a secondary offer that has an acceleration clause. The seller countered the price to match the primary offer, and the buyer accepted. The acceleration clause runs until June 2. Can the seller use an acceleration clause with the first secondary offer if another secondary offer comes in before June 2? If so, does the listing agent send an amendment to change the price on the first secondary offer? If there isn’t another secondary offer and the secondary offer moves into primary position, is it necessary to remove the acceleration clause?


ANSWER:Whether Offer 3 would trigger a price increase for Offer 2 would depend on how the acceleration clause was drafted in Offer 2. Generally speaking, an acceleration clause is triggered so long as there is a bona fide offer received by the seller within the stated time frame. Whether that offer is primary or secondary would not matter.


To implement the price adjustment on Offer 2, the parties would follow the provisions and procedures stated in the acceleration clause. For example, the seller would submit an amendment to increase the purchase price based on the price in Offer 3. Keep in mind the amendment is only changing the purchase price and not the secondary position of the buyer.


Given the agent's description of the acceleration clause, the clause will, by the passage of time, become obsolete and end. There would be no requirement to amend the offer to remove the clause if it was not imple- mented by the June 2nd deadline. Specific questions on the drafting and exercising of an acceleration, or price escalation, clause may be referred to legal counsel who can review the clause and full facts and circumstances of the transaction.


Asking­rates­Office­from­07/01/12­–­07/31/18 Retail­Rates­ East:­$12.43­ Central:­$21.24 West:­$16.12


READ MORE ABOUT IT: For more information about price escalations, see the WRA LegalTalks: Escalation Clauses and Multiple Counter Proposals with Tracy Rucka at www.wra.org/LegalTalks/ EscalationClause and the January 2017 Legal Update, "Price Escalation Clauses and Multiple Counter-Proposals," at www.wra.org/LU1701.


Asking­rates­Retail­from­07/01/12­–­07/31/18 Office/Whse East:­$6.09 Central:­$8.31­ West:­$6.65


CIREX Inside Covers for


2018 Asking­rates­Office/Warehouse/Flex­from­07/01/12­–­07/31/18 32


To reserve your covers call 608-345-2880


INFORMATION­HEREIN­COLLECTED­FROM­SOuRCES­BELIEvED­RELIABLE.­CIREX/PROPERTY­DRIvE­IS­NOT­RESPONSIBLE­FOR­ITS­ACCuRACY.­


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