The 72-Hour Clause Explained: What It Means for Buyers and Sellers

If you are buying or selling property, you may come across something called a "72-hour clause", and at first glance, it can feel a bit intimidating. In reality, it is a very practical tool that helps keep property transactions moving while protecting both buyers and sellers.

Let's break it down in simple terms.

What is the 72-hour clause?

The 72-hour clause (sometimes called a continued marketing clause) allows a seller to:

• Keep marketing their property

• Even after accepting an offer that has conditions(like bond approval or sale of another property)

If a second serious buyer comes along, the seller can notify the first buyer and give them 72 hours notice to remove their suspensive conditions and make the deal final.

How does it work in practice?

1. The Seller accepts an offer with conditions

2. The property stays on the market

3. A new qualified buyer makes an offer and the seller accepts, subject to the full and final cancellation of the first offer

4. The qualified buyer satisfies the requirements from the lawyer

5. Once the lawyer is satisfied that the buyer is in fact qualified, they place the first buyer under 72 hour notice

6. The first buyer has 72 hours to:

   • Remove their conditions to the satisfaction of the transferring attorney (confirm their bond approval for example)

   • Should they not remove the conditions in time, the agreement can fall away, and the seller may accept the new offer

The 72-hour clause creates a fair balance between buyers and sellers. For buyers, it means you can still secure a property even if your offer has conditions, but it's important to understand that the deal isn't fully guaranteed yet. Should a more qualified buyer come along, like a cash buyer for instance, you may need to act quickly to meet your conditions or risk losing the property. For sellers, it offers flexibility by allowing continued marketing and the ability to consider stronger offers, without being stuck waiting for conditions to be fulfilled. While it can feel a bit pressured, this clause actually keeps transactions moving, encourages qualified buyers and ensures transparency for everyone involved.

Final thoughts

The 72-hour clause is not something to fear, but rather to understand.

For buyers: Be prepared to act quickly when needed

For sellers: It gives you flexibility without losing momentum

Like most things in property, clarity is key. If you are unsure how this clause affects your specific situation, it is always worth having a conversation.

Buyers - Stay One Step Ahead and Get Pre-Approved

The strongest buyers and prepared buyers. A pre-approval not only gives you clarity on what you can afford, but also puts you in a stronger position when opportunities arise.

We offer a free pre-approval service with no obligation. Reach out to us on WhatsApp and we will walk you through it.