The continued marketing clause

The continued marketing clause, is also known as the 72-hour clause and it allows the Seller and the estate agent that the Seller appointed, to continue with marketing efforts, even after a Purchaser signed a binding offer to purchase contract, on a particular house.

Should the Seller receive another offer, a better offer, or even a similar offer, then the Seller may notify the first Purchaser of the new offer and signal his/ her intentions to accept the second offer.

The Seller must provide the first Purchaser with a written notice and an option that allows the Purchaser a certain time period in order to meet all the conditions of the offer to purchase contract. In most cases, the Seller will give the first Purchaser a notice of 72 hours, within which time, the first Purchaser should meet all the conditions of the offer to purchase contract.

Every offer to purchaser contract is different and the continued marketing clause may be linked to any period that was agreed upon between the Seller and the first Purchaser. Conditions that the first Purchaser should comply with can include conditions such as to pay the deposit for the transaction and/or to successfully secure a mortgage bond or perhaps to forego the condition of first selling the house of the first Purchaser before buying the house of the Seller.

If the first Purchaser is unable to meet all the conditions of the offer to purchase contract, within the stipulated time, then the Seller may accept the second offer and the first offer to purchase contract will become null and void, with no recourse for the first Purchaser.

Should the Purchaser meet all the conditions of the offer to purchase contract, within the stipulated time, then the first offer to purchase contract takes effect and the Seller will be obliged to also comply with the conditions of the first offer to purchase contract.

It is advisable to consult legal professionals such as Julies Attorneys Inc. on the specific provisions of your offer to purchase contract before accepting and signing those documents.