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What is a 72 Hour Clause?

The [b:893f857108]72 hour clause[/b:893f857108] 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:
[list:893f857108][*:893f857108]Release clause.
[*:893f857108]Escape clause.
[*:893f857108]Kick out clause.
[/list:u:893f857108]Key Attributes of 72 Hour Clause:
[list=1:893f857108][*:893f857108]Purchase Contract clause - It is a clause in a purchase contract. It allows one party to withdraw under certain conditions.

[*:893f857108]Includes Time Frame - It allows a time frame which is usually a 72 hour period.

[*:893f857108]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.

[*:893f857108]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.
[/list:o:893f857108]

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

[color=red:19fad426e8][size=9:19fad426e8][Edited by Jessica, made minor changes. Thanks.][/size:19fad426e8][/color:19fad426e8]

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i just went into a cell phone store today to look at phones and i was pressured into signing a contract by the sales reps. i had told them no quite a few times but somhow i still got hustled into it. it has only been 5 hours after i signed the contract and i realized i dont need the phone. please notify me of the law that is in affect and what the stipulations would be to back out...thanks

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome ryan,

Your query has been answered in the following link:
http://www.mortgagefit.com/pub/72hr-clause.html

Please take a look. I hope it will help you.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We were pressured to sign a contract on Saturday. Can we use the 72 hour escape clause to get out of this contract? If yes, how do we go about it. Thanks

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

kampkrazy, what kind of contract did you sign? some specify a rescission period, and that allows you to cancel within a 72 hour period. other types of contracts don't have such a provision, but if you contact the other party(ies) to the contract, you may well have the option to cancel.

you should consult with an attorney to determine your rights and responsibilities - you don't want to end up being penalized for changing your mind.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If the seller invokes the 72 Hr Clause to the buyer, does the 72 hours include non business days such as Saturday and Sunday when the banks are closed?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi karenf!

Welcome to forums!

I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/problems/72hrclause-banks.html

Take a look at it. Hope it helps you.

Sussane

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

There is a contingent buyer on a property with a 72 hour timeframe to get a Purchase Agreement if a cash offer is made by someone on same property. I have made a cash offer on the same property, but the seller's realtor says she can't reach the buyers until 4 days from now to present my offer. (they are out of town or something) Do I have to wait until the realtor says she can reach the buyers. I suspect she is showing the property this weekend to some of her buyers and wants to make sure they get first shot at it.

Sue

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

This is an issue to be better handled by an experienced attorney. You should immediately contact an attorney and take his opinion in this matter.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I don't suppose you have a whole lot of choice here, Sue. Since the realtor is in control of the contractual situation, if the homeowners are unavailable for a few days, that's pretty much it.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

signed a contract yesterday for insulation. Have til Mon. midnight to get out. Does that mean they have to receive the cancellation notice by then or just have it post marked by then.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi yabadabadoo,

Even if the cancellation notice is post marked by Monday midnight, it will be considered as valid. But it will be better if they receive the notice by Monday.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:49 | Post subject:

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