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Kathy Snyder, Real Estate Pro in Nashua, NH

I have buyers who made an offer on a property and we have come to terms on everything except one thing. The

Asked by Kathy Snyder, Nashua, NH Fri Feb 13, 2009

Seller is requesting a 24 hour kick out clause. If he receives a better offer than he will give my buyers a 24 hour period to meet or beat the other offer. My Buyers have nothing to sell. Do you think the kick out is being used correctly? Because I see nothing but problems for my Buyers and an escape route for the Seller. My Buyers want the house, any suggestions?

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There is usually only a kick out clause if there is a home sale contingency. I would have thought that this request was unacceptable.
2 votes Thank Flag Link Fri Feb 13, 2009
Sounds fishy to me. This really reeks of a scam to get the price higher.
3 votes Thank Flag Link Fri Feb 13, 2009
It cost the buyers money to proceed with the sale and that money could be lost. It is not in the best interest of the buyer to have a kickout clause. I would reject it. Final offer.
2 votes Thank Flag Link Fri Feb 13, 2009
I have to ask if your buyer is a cash buyer? I have seen a number of contracts fall through in recent months because of the difficulty of getting financing. This could be what the seller is fearful of.

I would suggest that you respond to the request of a kick out clause (we call it a right of refusal here in Arkansas) with a suggestion that the clause be removed upon loan approval of the buyer. That way, everyone is satisfied. The seller will know that they do in fact have a solid buyer and the buyer will certainly be able to understand that with the amount of loans being denied in todays market that it is not unreasonable for a seller to be wary.

Sometimes we have to put ourselve in the sellers shoes.
Let me know if this helps.
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1 vote Thank Flag Link Fri Feb 13, 2009
WOW then I would recommend all other comments pay for all services, however impedes your buyers options I most likely tell my buyers to move on what are they going to do if comes days away from close better offer is there... leaves your buyer on "street corner " no place move to !

SUGGESTION: Kick clause only in effect during option period.
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1 vote Thank Flag Link Fri Feb 13, 2009
Right. A kick-out clause should only be inserted if the buyers have a contingency that they would have to waive should a better offer comes in. The seller has every right to "sit" on the offer for 24 hours to see if another offer comes in, but I don't think it can be added to the contract.
1 vote Thank Flag Link Fri Feb 13, 2009
Or What if the seller would agree to pay for all services ordered should they execute the kickout clause, they are getting more money because of a higher offer and might think it beneficial.

If you do this be careful you are not an attorney, your broker might be able to help with wording.
1 vote Thank Flag Link Fri Feb 13, 2009
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