Many property buyers don't understand the 72 hours clause
Category Weekly Advice
As with many aspects of South African property law, the general public often know about the 72 hours clause but frequently do not fully understand it and its implications.
This can lead to great collateral damage, says Rowan Alexander of Alexander Swart Property.
"Fundamentally," says Alexander, "the clause makes provision for the seller to accelerate the progress of his home's sale in certain circumstances. It allows him to accept another offer even though he has signed for a first offer from a potential buyer."
Why should such a clause be deemed necessary in residential property transactions? Because, says Alexander, many offers to buy come with suspension conditions which can delay or nullify the sale taking place.
"For example," he says, "the offer may be made subject to the buyer being given a bond or to his first selling the home in which he is still living. It can also be subject to his selling another property or even to his being accepted for a work position for which he has applied."
In these circumstances with the sale by no means being guaranteed or subject to a delay, if the seller has a 72 hours clause in the Deed of Sale he is entitled to accept another offer or offers which could result in a quicker, less complicated sale. However in these cases the seller has first to give the original bidder 72 hours to try and fulfill the conditions of his contract.
The 72 hours of the clause, adds Alexander, applies only to business or working days, i.e. Monday to Friday.
If, say, the clause comes into effect at 11:00 on a Friday it cannot be effected until 11:00 on the following Wednesday.
Regrettably, says Alexander, some buyers enter into a sale contract without realizing that this clause is in their contract and when presented with the 72 hours ultimatum can then be thrown into a panic while they try desperately to find a way of fulfilling the contract conditions in what is a very limited period, but this does not alter the fact that the clause is essential to fair dealing for all involved.
Author: Independent author
