How does a Kickout Clause work in real estate?


How does a Kickout Clause work in real estate?
By Scott Rogers • January 22, 2018
Buying and selling at the same time can be tricky -- and a common question is whether you should go ahead and make an offer on a house if you do not yet have your house under contract. If you do so, you'll likely then be dealing with a kickout clause. What is a Kickout Clause? If a buyer who needs to sell their home in order to a buy a new home finds a home that they want to purchase – they can make an offer that is contingent upon the sale of their current home. If a seller is willing to entertain such an offer they will typically counter back with a "kickout clause" which allows them to continue to market the property to other buyers who do not have to sell a home in order to buy. If a second buyer comes along and makes an offer, that is not contingent upon the sale of a house, the seller then provides notice to the primary buyer that they are being "kicked out" – and that primary buyer has a set period of time (typically 48 or 72 hours) to either get their house under contract (to satisfy the home sale contingency) or remove the home sale contingency by showing proof that they can proceed with the purchase without selling their current home. If the primary buyer cannot do this, and the timeframe passes, then the first contract will be null and void and the seller can then proceed with the second buyer. OK -- and no -- a kickout clause does not have anything to do with soccer. :) Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
Comments (0) or Subscribe