A fully executed Oregon purchase and sale agreement includes a home sale contingency, allowing the buyer 30 days to sell their current home. On day 20, the seller receives a backup offer and delivers written notice to the buyer invoking the '72-hour clause' included in the contract. Under this clause, what must the buyer do to keep the contract alive?

Correct Answer

B) Waive the home sale contingency and proceed with the purchase within 72 hours of receiving the seller's notice

The 72-hour clause (also called a 'bump clause' or 'right of first refusal clause') in an Oregon purchase and sale agreement allows the seller, upon receiving a better offer, to give the original buyer written notice requiring the buyer to either waive the home sale contingency and proceed with the purchase unconditionally, or release the contract within 72 hours. If the buyer chooses to waive the contingency, they commit to purchasing the property regardless of whether their current home sells. If they do not waive within 72 hours, the seller may terminate the agreement and accept the backup offer.