The real estate market has been red-hot, so you had no problem finding a buyer for your home shortly after you listed it. They went above your asking price and are already pre-approved for a mortgage loan from their bank.
There’s just one possible hitch in your (and their) plans: They have to sell their existing home before they can complete their deal with you.
A kick-out clause can help you balance your interests with the buyers’ interests
Now that fall is in full swing and winter is coming, you’re (rightfully) worried that the real estate market is going to cool right down with the weather. What happens if your buyers aren’t able to sell their home and your deal falls through? You’d lose out on any other potential buyers who may have been waiting in the wings — and you may be stuck sitting in your home through the holiday season.
Worse still, the entire real estate market could stay cooled off come next spring. That means you could be looking at substantially smaller offers for your home from the next potential buyers.
One solution to the problem is a “kick-out clause.” This is a contingency clause written into your contract that allows you to continue showing your home to other potential buyers. If you get an offer from a second buyer that meets your needs (and isn’t reliant on the buyer selling their home in order to make the deal), your first buyer gets a set period of time (usually 72 hours) to either come through with the sale or walk away.
Buyers often put contingency clauses in their offers, so why shouldn’t a seller do the same? If you’re not sure what you should do, get help protecting your interests.