The NVAR Residential Sales Contract contains a “time is of the essence” clause, which means that all deadlines must be strictly observed. Once Settlement Date passes, the contract is complete, but certain rights and obligations of the parties continue. A release agreement (NVAR K1116) is a separate contract, whereby the parties agree to release each other from their obligations under the Residential Sales Contract, subject to certain conditions. So long as its 100% clear Buyer is in Default, execution of the Release in no way impacts the Seller’s ability to relist and sell the property to another buyer. If it’s unclear whether Buyer is in Default or Seller also breached the contract in some way, the best practice would be to direct Seller to an attorney for a legal opinion regarding relisting the property.