Key Takeaways

  • The 72-hour clause allows sellers to keep marketing their home while under a contingent contract.
  • It protects sellers from missing out on better offers by giving the first buyer a deadline to remove contingencies.
  • The clause is also known as a kick-out, escape, or release clause.
  • Buyers should be prepared to act quickly, especially in competitive markets.
  • Alternatives like 72SOLD programs claim rapid home sales but have mixed reviews.

The 72-hour clause is a common provision added to real estate contracts that allows a seller to continue marketing their property for a period of time after an offer is made.

72-Hour Clauses and Property Purchase Agreements

Real estate contracts can be very complicated, often containing language that is hard to understand for people who don't have any legal experience. While reading real estate contracts, you may encounter something known as the 72-hour clause. People who are selling or buying property for the first time frequently misunderstand this clause, which can lead to a variety of problems.

For example, many people assume that this clause provides protection before buyer's remorse, meaning you would have 72 hours to back out of an agreement to buy a home. However, this isn't the case, and the 72-hour clause is actually meant to protect the person selling a piece of property.

In the past, making an offer on a home was linked to the buyer selling their existing home. Once an offer was accepted, the seller would take the property off the market for a certain amount of time to allow the buyer to sell their home. These time periods could be as long as eight weeks. Naturally, having to keep their property off the market for such a long period of time could be harmful to sellers, causing them to miss out on other offers.

The 72-hour clause is meant to prevent this problem for the seller. After an offer has been made, the seller can keep their property on the market. If they receive an unconditioned offer, which is one that is not linked to the sale of the buyer's home, the seller must notify the original buyer in writing. The buyer then has either 72 hours to unlink the purchase of the property to sell their home or leave the deal. Most sellers request that their real estate contract contains the 72-hour clause.

How the 72-Hour Clause Works in Practice

In real estate transactions, the 72-hour clause—also referred to as a kick-out clause—functions as a seller-friendly mechanism to manage contingent offers. This clause allows sellers to accept an offer contingent on the buyer selling their current home while still actively marketing the property. If a second, non-contingent offer comes in, the seller notifies the first buyer, activating the clause.

From that point, the original buyer typically has 72 hours (or another agreed-upon timeframe) to either:

  • Remove their contingency (often by proving financing or removing the home-sale condition), or
  • Walk away from the deal, freeing the seller to move forward with the backup offer.

This clause benefits sellers by maintaining leverage and reducing the risk of long delays in the transaction process.

The 72-Hour Clause Step-by-Step

  1. The seller can accept a buyer's offer while still marketing their property.
  2. The seller receives another offer that they accept as a backup.
  3. With this backup offer in place, the seller contacts the original buyer about the new offer, activating an escape clause.
  4. The original buyer then has 72 hours to complete their purchase or back out and allow the second offer to take hold.

The 72-hour clause can be beneficial for both property sellers and buyers. For the seller, it can help them make a sale more quickly and may give them access to multiple offers. The buyer is protected because it eliminates the situation where they've sold their previous home only to find that the home they thought they were buying has been sold to another person. It's important to understand that while this clause is known as the 72-hour clause, the notification period can be whatever length the seller and buyer agree upon.

There are also several other names for this clause, including:

The goal of property sellers is to get the highest price they possibly can in a short amount of time. The sale of property is usually subject to something known as a suspensive condition. For example, one type of suspensive condition would be that the sale would be voided if the buyer is unable to acquire a bank loan in 14 days. Having this condition in place can be disadvantageous for the seller if a cash buyer or a pre-approved buyer makes an offer during this 14-day period.

Effectively, the potential buyer cannot purchase the home because of the existence of the suspensive condition. This can be extremely frustrating for the seller, especially if the cash buyer finds another property and the original buyer fails to acquire their loan, meaning the seller lost out on two potential sales. Adding a 72-hour clause to a contract can help reduce the seller's risk of missing out on beneficial offers for their property.

72 Hour Home Sale vs. 72SOLD

It's important not to confuse the 72-hour clause with programs like 72SOLD, a marketing approach that promises to sell homes within a 72-hour timeframe. These programs typically focus on creating competitive urgency through limited-time showings and concentrated buyer interest.

While 72SOLD markets itself as a fast-track method to secure top-dollar offers, it is not a legal or contractual clause like the traditional 72-hour contingency clause. Instead, it’s a branded selling system involving scheduled viewing windows and aggressive pricing strategies to generate quick offers.

Key differences include:

  • 72-Hour Clause: A legal contract term in purchase agreements.
  • 72SOLD: A marketing method used by some agents and brokers, not a contract clause.

Consumer reviews for programs like 72SOLD are mixed. While some homeowners report fast sales and strong offers, others mention higher-than-expected fees or inflated listing prices that didn’t generate results. As with any sale approach, due diligence is essential.

Tips for Buyers Facing a 72-Hour Clause

If you're a buyer under contract with a 72-hour clause, here are practical tips to navigate the situation:

  • Stay Prepared: Have your financing ready and your current home listed, if applicable.
  • Work Closely with Your Agent: They can help you act quickly if you're notified that the clause is triggered.
  • Evaluate Risk: Know how much you're willing to compromise to retain the deal if another offer arises.
  • Request Clarity: Ensure your contract clearly defines the notice period (it doesn’t have to be exactly 72 hours).

Being proactive can increase your chances of securing the property without unnecessary stress.

Frequently Asked Questions

  1. What is a 72-hour clause in a home sale?
    A 72-hour clause allows sellers to continue showing and marketing their home even after accepting a contingent offer. If a better offer comes in, the original buyer has 72 hours to remove contingencies or step away.
  2. Does the 72-hour period include weekends or holidays?
    The timeframe depends on how it's defined in the contract. Some agreements specify business days, while others count calendar days. Always clarify this with your agent or attorney.
  3. Is the 72-hour clause negotiable?
    Yes. Both parties can agree to a different notification period—24, 48, or 96 hours are also common variations depending on the market and negotiation strength.
  4. What happens if the original buyer can't remove their contingency in time?
    If the original buyer fails to act within the allotted time, they usually forfeit their claim to the property, and the seller may proceed with the backup offer.
  5. How does 72SOLD differ from a 72-hour clause?
    72SOLD is a marketing strategy claiming fast home sales, not a contractual term. The 72-hour clause is a legally binding provision found in some real estate contracts.

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