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What is a Kick Out Clause?

Kick Out Clause Explained

A kick out clause can be an important clause to add to your sale agreement if your buyer is also selling their home at the same time. This clause protects you from delays in the sale of your home, in the case of complications that arise during the sale of theirs.

This term refers to a provision in real estate contract that determines a “home sale contingency period” during which the buyer has a certain amount of time (generally 30 to 90 days), to complete the sale of their home, or decide to move forward with the purchase and sign the sales contract (therefore committing to a payment or penalty if they then decide not to buy). During the contingency period, if the buyer does not have a contract on their home, you can continue to show the home to others, and if you are able to find a better offer you can notify the first buyer, in which case – if the buyer cannot purchase the home – the agreement can be legally voided with no exposure to the seller.

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