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 Sam
Site Admin
Joined: 21 May 2005
Posts: 211
Location: CALIFORNIA
97.24 Dollars($)
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 Posted: Thu Jul 01, 2004 2:24 am Post subject: What is a 72 Hour Clause? |
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The 72 hour clause is a written contract, inserted into a real estate purchase. It entitles the buyer with a specific time period, so that he/she can achieve the sale of his/her current home before purchasing a new house.
It is also known as:
- Release clause.
- Escape clause.
- Kick out clause.
Key Attributes of 72 Hour Clause:
- Purchase Contract clause - It is a clause in a purchase contract. It allows one party to withdraw under certain conditions.
- Includes Time Frame - It allows a time frame which is usually a 72 hour period.
- Permits Refinancing - It gives permission for refinancing. It allows a buyer to sell his current house before purchasing a new house, with the precondition of 72 hour specified deadline.
- Contingent Sales Contingency - It inherits contingent sales contingency, which implies that purchase of new house by a buyer is contingent upon the sell of buyer's current home.
Last edited by Sam on Wed Oct 12, 2005 5:21 am |
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Cas
Guest
0.10 Dollars($)
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| Posted: Wed Oct 12, 2005 2:59 am Post subject: mortgage remorse |
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| After signing the sale of agreement, i have changed my mind and no longer want to sell my house. Is there a way out for me? |
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Niicss
Joined: 03 Oct 2005
Posts: 1245
Location: New Jersey
186.06 Dollars($)
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| Posted: Wed Oct 12, 2005 4:53 am Post subject: RE |
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Hi Cas
The first thing you have to do is to look at the agreement and see if there are any contingencies that allow you to be out of the agreement. There is always a provision that allows to you decide not to sell.
But the important part is you are not aware exactly of what the buyer's reaction is going to be and you don't even know whether he will attempt to enforce the agreement.
Also, you don't know if there will be any legal consequences. Its better to have an attorney's opinion about the legal aspect.
Since you have set up your mind for the cancellation, try to look for ways to soften the blow to the potential buyer who may have put up an earnest money deposit. He may also have paid for credit report and appraisal, and may have been charged a cancellation fee by the settlement agent. The buyer may have already given notice (if they rent) or sold his own house too.
If you can bear some of their hard costs, may be they will not try to enforce the agreement.
Thanks
Niicss
[Edited by Jessica, made minor changes. Thanks.] |
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