The 72-Hour Clause, otherwise known as release clause, kick-out clause, hedge clause, escape clause, or right of first refusal clause, allows a seller the ability to continue to market a property despite accepting an offer from a prospective borrower.

These clauses basically allow the seller to get the most for their property.

Example Scenario

A Seller is listing their single family home for $310,000, and after marketing the property for several weeks, a buyer puts and offer in for exactly $310,000. The following day someone approaches the sellers, discovers someone has posted an offer for $310,000 and offers them $315,000. Depending on the wording of the 72-hour clause the seller then notifies the original prospective buyer and gives them 24-hours to beat the original $315,000.

Example 72-Hour Clause

The Seller shall have the right to keep marketing the property, and to receive alternative offers to purchase the property.

Should the Seller receive a bona fide offer to purchase the property from a third party, at any stage prior to the fulfillment of the suspensive conditions contained herein, which the seller considers more favorable than this offer to purchase, the Seller shall be entitled to accept such offer to purchase.

If the Seller accepts an alternative offer, the Seller shall notify the Buyer that the Release Clause has started to function immediately.

The Buyer shall then have 24 hours to fulfill all suspensive conditions contained in this offer to purchase. The Buyer has to commit within this time frame, to taking transfer of the property, free from said conditions. Failing compliance within 24 hours, this agreement of sale shall lapse and become null and void, and neither party shall have any claim against the other whatsoever.

Bankapedia's Take

 Like anything in life- having or not having a 72 hour clause in a contract is negotiable. If you are worried the property may get scooped up - request the clause be removed from the contract if they want a deposit. Shouldn't be too hard in the current market(2009)