Contracts
What is a 'release clause' in a Nevada real estate contract and when is it used?
AA clause releasing both parties from any future liability after closing
BA provision allowing a seller to accept another offer and give the first buyer a specified period to remove a contingency (such as sale of existing home) or release their purchase contract✓ Correct
CA clause releasing the earnest money to the seller immediately
DA provision allowing the buyer to release the escrow at any time
Explanation
A release clause (kickout clause) is used in Nevada when a buyer makes an offer contingent on selling their current home. The seller accepts but includes a release clause — if the seller receives another acceptable offer, they give the original buyer a set period (typically 72-96 hours) to either remove the contingency (proceed without needing the current home sale) or release the contract. This protects sellers from indefinitely being tied to a contingent offer while allowing buyers to try.
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