Kick-Out Clause
A kick-out clause allows sellers to continue marketing a home under contract with contingencies. Learn how it works in real estate contracts.
Definition
A kick‑out clause is a provision in a purchase agreement that allows a seller to keep their property on the market and accept backup offers while under contract with a buyer who has contingencies, typically the sale of the buyer’s current home. If the seller receives a better offer, they notify the original buyer, who then has a specified period (often 24 to 72 hours) to remove the contingency or risk losing the property. Kick‑out clauses protect sellers from lengthy contingencies while giving buyers time to meet conditions.
Why It Matters
Kick-Out Clausecan affect financing, title, negotiations, or closing timelines. Sellers who understand it can set better expectations, while buyers can plan smarter offers and reduce surprises later.
Examples
Example 1: A seller clarifies kick-out clause in disclosures to prevent disputes.
Example 2: A buyer evaluates kick-out clause while comparing properties and loan options.
Example 3: Title or escrow highlights kick-out clause requirements to keep the deal on schedule.
Tips
Ask how kick-out clause applies in your deal before mutual acceptance.
Keep supporting documents organized and accessible.
Maximize market reach with a flat fee multiple listingservice.
Additional Context
Kick-Out Clause is often linked to financing requirements, property valuation, title conditions, or contract negotiations. Address questions early and document agreements in writing for a smoother closing process.
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