72 hours clause, usually included in real estate sales contracts, also known as breakout clauses, release clauses , kick-out clauses , hedge clause or the rights of the first rejection clause .
A 72-hour clause is a possible seller that allows the seller to accept a contingent bid for the buyer to purchase his property, while allowing the seller to continue to market the property.
If the seller now accepts another offer (preferably) to purchase the same property, he may also accept this offer, as a back-up offer. The seller can then enable the escape clause by informing the original buyer of the back-up offer.
The first buyer now has a certain period of time to meet all the contingencies of the buyer in the sales contract, or cancel the contract and lose the property. If the buyer can not meet contingencies on time, the original contract will be canceled and the back-up bid will move to the first position.
The term 72-hour clause can be somewhat misleading, since the notice period in which the buyer must meet the possibility of a buyer is negotiable. Effective notification periods may be longer or shorter than 72 hours. Further ambiguity arises if 72 hours is only considered calculated on business weekdays, excluding weekends and holidays
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Source of the article : Wikipedia
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