### What is the 72-Hour Clause also often called? - [ ] The buyer's clause - [ ] The immediate sale clause - [x] The release clause - [ ] The contingent offer clause > **Explanation:** The 72-Hour Clause is also known as a release clause. It allows sellers to keep their property on the market and accept backup offers, giving them leverage to expedite or cancel the initial contract based on additional offers received. ### Who typically includes a 72-Hour Clause in a sales contract? - [ ] The lender - [ ] The buyer - [x] The seller - [ ] The real estate agent > **Explanation:** The 72-Hour Clause is typically written into sales contracts by the seller. It allows the seller to continue marketing the property and negotiate with other potential buyers even after signing a contract with a buyer. ### What can force a buyer to purchase a house quickly under the 72-Hour Clause? - [x] The seller receiving a better offer - [ ] The buyer receiving loan pre-approval - [ ] The appraiser's evaluation - [ ] The home inspection report > **Explanation:** Under the 72-Hour Clause, if the seller receives a better offer from another buyer, they can activate the clause, forcing the initial buyer to complete the purchase of the house within a short period or forfeit the contract. ### What does the 72-Hour Clause allow the seller to do while waiting for the buyer to sell their current home? - [ ] Remain idle until the current home sells - [ ] Provide additional home inspections - [x] Keep the home on the market and accept backup offers - [ ] Offer discounts to the original buyer > **Explanation:** The 72-Hour Clause allows the seller to continue marketing their property and accept backup offers while the initial buyer works on selling their current home. This maintains the seller's opportunity to move forward with another potential buyer. ### Can the time period specified in the 72-Hour Clause be negotiated? - [x] Yes, the time period can be negotiated - [ ] No, it is always exactly 72 hours - [ ] Only under specific legal conditions - [ ] Only if both parties agree in writing > **Explanation:** While commonly known as the 72-Hour Clause, the actual time specified in the release clause can be negotiated and set to a different duration. The key is that advanced notice is always required before the seller can cancel the deal. ### What must the seller do before activating the 72-Hour Clause to cancel a deal? - [ ] Wait for approval from the real estate agent - [x] Provide advanced notice to the buyer - [ ] Obtain a court order - [ ] Inform the buyer verbally > **Explanation:** Before a seller can activate the 72-Hour Clause and cancel a deal, they must provide advanced notice to the initial buyer. This ensures fairness by giving the buyer a final opportunity to complete the purchase. ### In what type of contingency situation is the 72-Hour Clause particularly useful? - [ ] When the buyer needs to improve their credit score - [ ] When the seller needs to find a new home - [x] When the buyer's purchase is contingent on selling their current home - [ ] When the lender requires additional documentation > **Explanation:** The 72-Hour Clause is particularly useful when the buyer's offer is contingent on selling their current home. It allows the seller to continue seeking other offers and expedites the process if a better offer comes along. ### What is the potential result for the initial buyer if they cannot meet the 72-hour deadline? - [x] Forfeiting the contract - [ ] Receiving an extension automatically - [ ] Negotiating a lower price - [ ] Voiding the seller's better offer > **Explanation:** If the initial buyer cannot meet the 72-hour deadline after the clause is activated, they may forfeit the contract, allowing the seller to pursue the better offer they received from another buyer. ### What effect does the 72-Hour Clause have on the seller's flexibility? - [ ] It forces the seller to wait for the initial buyer indefinitely - [ ] It allows the seller to back out of any contract - [x] It gives the seller flexibility to accept better offers - [ ] It limits the seller to accepting only backup offers without activation > **Explanation:** The 72-Hour Clause provides the seller with significant flexibility to accept better offers while keeping the initial contract valid. This enhances the seller’s ability to maximize the property's sale potential. ### What should a buyer be prepared for if a 72-Hour Clause is in their purchase contract? - [ ] Immediate acceptance of the seller’s counteroffers - [x] Quick decision-making and the possibility of needing to expedite their purchase - [ ] Extended periods of negotiation - [ ] Prescheduled property inspections > **Explanation:** Buyers with a 72-Hour Clause in their contract should be prepared for quick decision-making and the potential need to expedite their purchase if the seller receives a more favorable offer. This requires readiness to act swiftly or risk forfeiting the contract.