Explained:Continued Marketing or 72 Hour Clause
Category Property Investment
Either terms are often included as a standard clause in most Offer to Purchase documents and can be difficult to comprehend or misunderstood, especially for first time buyers of immovable property.
Having this clause present in your Offer to Purchase and signed by both Seller and Purchaser essentially means that the Seller can accept a bona fide and competing offer within a certain window period.
In practical terms, this clause comes into play when there is a suspensive condition that needs to be fulfilled before the sale can take place.
Sales where a Buyer needs to finalise a bond/mortgage from a bank or financial institution first or Buyer needs to sell their property are generally instances where this clause would apply and means the Seller can continue to market their property during the period waiting for the suspensive condition to be fulfilled and should a better competing offer (not subject to any suspensive condition or cash) be received and accepted then the 72 Hour clause is activated and the first Buyer would then have 72 hours to waive his suspensive condition or meet the offer made by the second Buyer.
Should the first Buyer be unable to do this then the Seller can legally cancel the agreement and proceed with the second Buyer.
It is important to read the wording carefully as variations can occur and the time frame of 72 hours can be increased or decreased.
Author: Cesar Alexandre
