What Is a Kick-Out Clause in Real Estate?

A kick-out clause is a provision in a real estate contract that allows a seller to continue marketing their property — even after accepting a buyer’s offer that includes a financing or home sale contingency. It gives the seller the right to “kick out” the first buyer if a stronger offer comes in.

⚖️ How a Kick-Out Clause Works

When a seller accepts a contingent offer (for example, one dependent on the buyer selling their current home), a kick-out clause provides protection. If another qualified buyer submits a better offer, the seller can give the first buyer a short window — typically 48 to 72 hours — to remove their contingency or step aside.

This clause keeps the sale flexible and helps sellers avoid being locked into a long waiting period with a buyer whose financing or home sale may fall through.

🏠 Example of a Kick-Out Clause in Action

Suppose you accept an offer from a buyer who needs to sell their home first. Two weeks later, another buyer makes a non-contingent cash offer. You invoke the kick-out clause, giving the first buyer 72 hours to remove their contingency. If they can’t, you can legally proceed with the second offer.

This clause ensures sellers stay in control while remaining fair to the initial buyer.

📋 Pros and Cons for Sellers

Advantages

  • Allows continued marketing of your property
  • Provides leverage to accept stronger offers
  • Prevents being stuck with a stalled or risky deal

Disadvantages

  • May discourage buyers who need contingencies
  • Creates some uncertainty until the contingency is cleared
  • Requires clear communication and written notice periods

💡 Why FSBO Sellers Should Understand Kick-Out Clauses

If you’re selling For Sale By Owner (FSBO) through a Brokerless Flat Fee MLS listing, knowing how a kick-out clause works helps you stay in control of negotiations. You can accept contingent offers without losing momentum — keeping your property visible to new buyers while protecting your interests.

Stay in Control with Brokerless Flat Fee MLS

Brokerless helps FSBO sellers list on the MLS for a flat fee, reach more buyers, and maintain control over contingencies, kick-out clauses, and timelines.

List Your Home on the MLS

A kick-out clause offers flexibility and security for sellers dealing with contingent offers. By understanding how it works, FSBO sellers can negotiate confidently and keep their sale moving forward — especially when listed through Brokerless.