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
Accepting an offer from a buyer who still has to sell their own house means accepting a timeline you do not control, and this clause is the hedge. The seller keeps marketing, and if a stronger offer appears, the first buyer gets a short window, often 3 days under NWMLS Form 22B, to waive the contingency and prove they can close anyway. Buyers who cannot bridge that gap lose the house plus whatever they spent on inspection and appraisal.
Examples
A seller under contract with a buyer contingent on selling in Puyallup receives a non-contingent offer $10,000 higher and issues a bump notice starting a 3-day clock.
The bumped buyer secures a bridge loan in 48 hours, waives the contingency, and keeps the house at the original price.
A buyer who cannot waive walks, out $650 for the inspection and $700 for the appraisal, though the earnest money comes back.
Tips
Buyers: price a bridge loan or a HELOC on your current home before you write a contingent offer, so a bump notice is a decision you already made rather than a scramble.
Sellers: use exactly the notice method the contract specifies. Notice delivered another way does not start the clock, and a defective bump can cost you the sale.
List your current home, and ideally get it under contract, before making the offer. A contingent offer backed by a pending sale gets bumped far less often than one backed by a house that is not on the market yet.
Related Terms
Contingency Clause
A contingency clause is a contract condition that must be met for the sale to proceed. Common contin...
Inspection Contingency
The inspection contingency allows buyers to renegotiate or exit based on inspection results. Learn h...
Land Contract
A land contract (contract for deed) is seller financing where ownership transfers after full payment...
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