Definition of Kick-Out Clause

A kick out clause is a provision included in a real estate contract that allows a seller to continue marketing and showing their property to other potential buyers even after accepting an offer from a buyer with contingencies. If the seller receives a better offer without contingencies, the kick out clause gives the initial buyer a specified period, usually 24-72 hours, to remove their contingencies and proceed with the purchase. If the initial buyer fails to do so, the seller can terminate the contract and accept the new offer.

Related real estate terminology:

Contingency
Right of first refusal
Backup offer
Multiple offers
Purchase agreement
Financing contingency
Sale contingency
Home inspection contingency
Earnest money deposit
Option period

References:

1. Investopedia: Kick Out Clause – Definition and Explanation
2. The Balance: Understanding Kick Out Clauses in Real Estate Contracts
3. National Association of Realtors: Navigating Kick Out Clauses in Real Estate Transactions