Posted on: 06th Jun, 2006 03:23 pm
Please advise how to word the 72 hour clause, from the vendor's point of view.
Hi Mmacleod,
The 72 hour clause is intended to protect sellers against the losing valuable marketing time, if they accept an offer to purchase subject to the conditions. The 72 hour clause is also called as release clause, kick out clause, escape clause and first refusal clause.
The seller always wants to make easily possible to accept an offer to purchase. A better offer means extra money. So, the seller always is willing to go for shortest possible time and least complicated notification process.
The wording of 72 hour clause also provides him to afford the things are:
Thanks
SJ
The 72 hour clause is intended to protect sellers against the losing valuable marketing time, if they accept an offer to purchase subject to the conditions. The 72 hour clause is also called as release clause, kick out clause, escape clause and first refusal clause.
The seller always wants to make easily possible to accept an offer to purchase. A better offer means extra money. So, the seller always is willing to go for shortest possible time and least complicated notification process.
The wording of 72 hour clause also provides him to afford the things are:
- The sellers have the rights to keep marketing the property and to receive alternative offers to purchase the property.
- If the seller accepts an alternative offer, then the seller should notify the buyer that the release clause has started to function immediately. Then the buyer has to commit within 72 hours for taking the transfer of the property which is free from all the said conditions. Failing the commitment, the agreement of sale gets void.
Thanks
SJ
Hi M Macloed,
I just want to add few things more with Sarah.
Upon receiving a better offer the seller cannot simply cancel the contract. For that seller must informed buyer in writing by fax, telegram, phonogram or any other means. And the seller must confirmed that buyer receipt the notification. And in this case, the time period of 72 hour begins after the notice is received by the buyer.
Thanks
Olivia
I just want to add few things more with Sarah.
Upon receiving a better offer the seller cannot simply cancel the contract. For that seller must informed buyer in writing by fax, telegram, phonogram or any other means. And the seller must confirmed that buyer receipt the notification. And in this case, the time period of 72 hour begins after the notice is received by the buyer.
Thanks
Olivia