What Is A Kickout Clause

One of the lesser known clauses you may hear about when purchasing or selling a home is the kick-out clause. This is where a buyer and seller need to agree that the home can continue to be shown even though a contingent offer is in hand. This clause allows the contingency to still show the home and hope to receive a non-contingent offer.

In essence, if a non-contingent offer did come in the seller would be allowed to “kick-out” the contingent offer and proceed with the non-contingent offer. The buyer would have the option to remove their contingency and if not, they would not move forward.

If the first buyer did walk away they would be entitled to receive their earnest money deposit back as well.

Typically, you will see a kick-out clause more in a buyer’s market as well.

To learn more about this you should work with a trusted real estate professional whether you are a buyer or a seller of a home.