When you're buying property in South Africa, especially in a competitive market, you may come across something called the 72-hour clause in your Offer to Purchase (OTP). It sounds technical, but understanding what it means — and how it could affect your dream home — is essential.
Here’s a breakdown of what the 72-hour clause is, how it works, and what you need to watch out for.
What is the 72-hour clause?
The 72-hour clause (sometimes called the escape clause) is a standard condition in many property sale agreements. It allows the seller to continue marketing the property — even after accepting your conditional offer — and accept a better offer under certain conditions.
When is it used?
This clause usually applies when a buyer makes an offer that is conditional — meaning it depends on something happening before the sale can go through. Common conditions include:
The buyer needing to sell their current property
The buyer waiting for bond approval from a bank
The buyer needing to raise a deposit or satisfy some financial requirement
In such cases, the seller may insert a 72-hour clause to protect their own interests in case a more secure offer comes along.
How does the 72-hour period work?
Here’s a step-by-step example of how the clause works in practice:
You submit a conditional offer, and the seller accepts it — with a 72-hour clause included.
The seller continues marketing the property while you try to meet your conditions.
If a second buyer makes a non-conditional (or more favourable) offer, the seller notifies you.
From the moment of notification, you have 72 hours (usually business hours only) to:
Waive your conditions (i.e., make your offer unconditional)
Or meet the conditions (e.g., get bond approval)
If you can't do that within 72 hours, the seller can cancel your offer and accept the second buyer’s offer.
Why do sellers use this clause?
It gives sellers flexibility while waiting on buyers who aren’t ready to commit fully.
It helps sellers minimise risk if they’re unsure whether the first buyer’s offer will go through.
It increases the seller’s chances of closing quickly in a competitive market.
Tips for buyers
If you're a buyer, here's what you need to know:
Always ask whether a 72-hour clause is included in your OTP before signing.
Get pre-qualified for a bond — it speeds up the process and strengthens your offer.
If your offer is conditional, have a backup plan ready in case you're given notice.
Don’t ignore the 72-hour notice — it’s a legal trigger that could cost you the property.
Is it legal in South Africa?
Yes — the 72-hour clause is fully legal and enforceable under South African contract law. It's a contractual term voluntarily agreed to by both parties and is not uncommon in residential property sales, especially where time or financial uncertainty is a factor.
However, it must be clearly written into the Offer to Purchase. If it’s not there, the seller cannot rely on it later.
Final word: Protect yourself
The 72-hour clause can feel like a curveball, but it’s not a trap. It’s a tool that gives both parties a bit of protection — as long as you understand it and plan accordingly.
When in doubt, always:
Ask your estate agent to explain the terms
Read your OTP carefully
Consider getting legal advice for big property decisions
