Wednesday, November 9, 2011

What Does “Contingent with No Kick-out Clause” Mean?

questionkeyboard wide What Does Contingent with No Kick out Clause Mean?

Q: I submitted a contract on a short sale last week. The house currently has a contract. On the listing it reads: ‘Contingent with no kick-out. Property is available but has a radified contract with at least one pending contingency – none of the pending contingencies have a kick out clause.’ Can you explain what this means? I am offering full price with me paying the closing costs with on contingencies. What are my chances in getting this house? The existing contract expires on 2-28-11. – Liz

A: The “No Kick-out” clause basically means that the Contract is a contract that the seller has accepted that has one or more contingencies that must be satisfied by one or both parties before they will go to settlement. These contingencies usually put the buyer in the driver’s seat for voiding a contract. The most common types of No Kick Out Contingencies are home inspection, radon inspection, financing, appraisal, and third party approval. The only time a back-up contract can take primary position is if the buyer and seller can not agree to the outcome of the contingencies. Many of these contracts do not close, so you might have a chance at getting this house. I suppose your agent would be able to find out what you position would be.

Read more: What Does “Contingent with No Kick-out Clause” Mean? |® Blogs

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