More sellers are insisting on a kick-out clause (realtybiznews.com)

by HRVSTR April 27, 2021, 4:48 am

So-called “kick-out clauses” are becoming more coming in real estate deals these days, with sellers often insisting on it due to their privileged position, with their homes attracting multiple offers.

A kick-out clause is a contingency in a purchase agreement that enables the seller to continue to offer their home for sale even after a bid has been accepted. Should they receive a better offer, they can then back out of the deal and accept the new bid instead. The clause has traditionally been added when buyers have a contingency in their offer, such as the need to sell their own home first in order to complete the purchase.