A seller accepts an offer conditional on the sale of the buyer's existing home within 60 days, with a 72-hour clause. Three weeks later, the seller receives a better offer. What rights does the seller have under the 72-hour clause?
Correct Answer
C) Must give the first buyer 72 hours to waive or the agreement is void
The 72-hour clause allows the seller to give the first buyer notice that they have 72 hours to waive their condition (sale of existing home) or the agreement will become void. This gives the seller the ability to accept other offers while still honoring the original conditional agreement.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Contracts & Agreements Question
Background Knowledge for Contracts & Agreements
Real World Application in Contracts & Agreements
Common Mistakes to Avoid on Contracts & Agreements Questions
Key Terms
More Contracts & Agreements Questions
What is the primary purpose of an Agreement of Purchase and Sale (APS) in a real estate transaction?
A buyer submits an offer with a financing condition that expires at 11:59 PM on Friday. The buyer's mortgage application is approved at 10:30 AM on Saturday. What is the legal status of the offer?
In Ontario, what is the significance of the 'irrevocable' period in an Agreement of Purchase and Sale?
Under what circumstances can a buyer waive a home inspection condition after discovering significant defects during the inspection?
Which of the following is NOT typically considered a standard condition in an Agreement of Purchase and Sale?
- → Which of the following is NOT typically considered an essential element for a valid contract under Canadian common law?
- → A buyer in BC wants to assign their pre-sale contract for a new development condo to a third party. Which statement is correct?
- → A commercial property purchase agreement includes a condition for environmental site assessment. The buyer's environmental consultant discovers soil contamination but the buyer decides to proceed anyway. To complete the purchase, the buyer must:
- → A buyer submits an offer with a financing condition that must be satisfied within 5 business days. On day 4, the buyer's mortgage application is approved but they want better terms. What can the buyer legally do?
- → In an exclusive listing agreement, what obligation does the seller have if they find a buyer themselves during the listing period?
- → Under the doctrine of 'time is of the essence' in real estate contracts, what is the legal significance when a party fails to meet a specified deadline?
- → What happens when a buyer waives a condition in an Agreement of Purchase and Sale?
- → Which of the following is a fundamental requirement for a valid contract under Canadian common law?
- → Sarah lists her home with ABC Realty under an exclusive listing agreement that expires on June 30th. On July 15th, she sells the property to a buyer who first viewed the home during an open house hosted by ABC Realty in May. Assuming a standard holdover clause exists, what is the likely outcome?
- → What happens when a condition in an Agreement of Purchase and Sale is not fulfilled by the specified deadline?
People Also Study
Real Property Law
60 questions
Agency & Professional Ethics
60 questions
Mortgage & Real Estate Finance
60 questions
Land Use & Planning
50 questions
Related Study Resources
Helpful Resources
Previous Question
A seller accepts a conditional offer but later receives a higher unconditional offer. The seller wants to accept the second offer. Under typical Agreement of Purchase and Sale terms, what is the seller's legal position?
Next Question
A seller receives three offers on the same day. The first is open until 6 p.m., the second until 8 p.m., and the third until 10 p.m. At 7 p.m. the seller signs the second offer and returns it to that buyer. What is the legal position at 7:30 p.m.?