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Hh, Other/Just Looking in 22066

what does contingency with a no kick out clause mean?

Asked by Hh, 22066 Sat Jun 27, 2009

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This question is about this property: http://www.trulia.com/property/1079877148-10722-Wynkoop-Dr-G…

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If you're talking about the term as it's used in Northern VA and the local MLS (MRIS), it means that an offer has been ratified and there's a contingency (such as a Home Inspection, Appraisal, Financing, etc) that needs to be removed. "No kick out" means that the seller can not "kick out" the offer and take another offer instead.

To you as a buyer interested in the property, it means that the seller can not accept any offer you give them regardless of the price/terms unless the initial offer/buyer backs out on his/her own accord and the property becomes "active" again (pending release).

DISCLAIMER: This is not intended as legal advice. Every contract is different. Consult an attorney for guidance.

Danilo
1 vote Thank Flag Link Sat Jun 27, 2009
Hh,

The most basic difference between KICK OUT clause and NO KICK OUT clause is WHO controls the contract: the Seller or the Buyer.

Once the offer is ratified:
1) Kick out clause - Seller can void the contract and accept another offer
2) No Kick out clause - Buyer can void the contract based on one of the contingencies written into the contract; Seller cannot void the contract without Buyers consent.

It all depends on the way the contract is written.
0 votes Thank Flag Link Sat Jun 27, 2009
It normally means that they have a ratified (accepted) contract, and the contract is contingent on something such as Home Inspection. This contingency does not give the seller the right to accept another contract.

Most contingencies come wtih a no kick out clause, such as home inspection, radon, finance, appraisal, etc.

But, If the buyer requested a contingency so they try and sell their own home, it would most probably have been a contingency with a kick out clause.

Hope that helps
Dina
Web Reference: http://www.myUSAhomes.com
0 votes Thank Flag Link Sat Jun 27, 2009
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