Short Answer
A kick-out clause, also called a right of first refusal or release clause, allows the seller to continue showing the property and accept another offer even while under contract with you. If the seller receives a better offer, they give you notice and a set timeframe, typically 48 to 72 hours, to remove your contingencies and proceed with the purchase. If you cannot, the seller can terminate and accept the other offer.
Kick-out clauses are most commonly used when a seller accepts an offer from a buyer who needs to sell their current home first. The clause protects the seller by allowing them to keep marketing the property. If another buyer makes an offer without a home sale contingency, the original buyer has a set period to waive their home sale contingency and move forward. If they cannot, the contract terminates and the seller sells to the new buyer. Kick-out clauses can also apply to other contingencies. If you have an inspection contingency, the seller might use a kick-out clause to give you a deadline to complete your inspections and remove the contingency. As a buyer, a kick-out clause puts pressure on you to act quickly. If you are confident in your ability to perform, it is manageable. If you have uncertainties, it can be risky. Your agent should explain the terms of any kick-out clause before you agree to it.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
Kick-out clauses favor the seller, but they are sometimes necessary to get your offer accepted. If you need to sell your current home to buy, a kick-out clause may be the only way to get the seller to accept your offer. The key is having a plan to sell your home quickly. I will help you price and market your current home so you can remove your contingency and protect your contract.
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