What does a Contingent with a Kick Out mean and can this house be bid on?

Asked by Arvind, Washington, DC Mon Jun 23, 2008

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Sylvia Barry,…, Agent, Marin, CA
Mon Jun 23, 2008
Hi Arvind:

Usually a Contingent with Kick Out means that there is a contract pending on the house (usually pending on the sale of the buyers home). However, the seller reserve the right to continue accepting offers and if a more attractive offer comes in, especially one without contingent upon sale of the home, then the owner can give the first buyer a certain amount of time (usually 24 to 72 hours - depending on the contract term) to remove that specific contingency. If the first buyer does not remove that contingency by the said time, then the seller can cancel the contact with the first buyer and accept the contract with the 2nd buyer.

Yes, you can make an offer on this house. However, what I described above is only a generalized, common usage of Contingent with a Kick Out clause.

You really need to engage a Realtor's service and understand detailed wording of the contract to know what exactly is in there and what needs to be done. A Realtor can guide you and make sure your offer is structured in the way where when the seller accepts your offer, it does put you in the primary position and that the previous contract is cancelled correctly and that you do have the primary position.

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