A contingency clause that gives the seller an added advantage to sell his/her property according to the best offer put forward is known as the 72 hour clause. According to the clause if a buyer accepts a proposal given by a seller, but during the same period a new buyer bequeaths a better offer so the buyer has the right to accept the new offer if the first buyer is unable to complete all the procedures within a stipulated amount of time.
The term 72hour can be misleading as it is negotiable and can be changed according to buyer or sellers convenience. This clause can also be referred to as release clause or right of first refusal clause.
The second offer can be considered as the backup offer and the seller keeps the buyer well informed about his/her backup plan. The seller can notify the buyer about this escape clause and the buyer needs to fulfill all the requirements within this period in order to acquire the property.
It is a risk that the buyer accepts after signing the contract and the clause can be modified or deleted if the buyer wishes to.
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