Kick Out Clause
A kick-out clause lets a seller keep marketing their home and accept a better offer — even after they’ve already accepted yours — if your offer includes a home sale contingency.
It works like this: the seller accepts your offer, but your deal is contingent on selling your current home first. The kick-out clause says the seller can continue showing the property. If another buyer makes a clean offer, you get 48–72 hours to remove your home sale contingency or lose the deal.
It’s the seller’s insurance policy against waiting for your house to sell.
How the Clock Works
When the seller receives a competing offer, they notify you in writing. You typically have 48–72 hours (the “kick-out period”) to decide:
- Remove your contingency: You commit to buying regardless of whether your home sells. You’ll need the cash or a bridge loan.
- Walk away: You get your earnest money back and the seller accepts the other offer.
On a $350K purchase, removing your home sale contingency means you could end up carrying two mortgages. That’s $2,000–$4,000/month in payments if your current home doesn’t sell fast.
Watch out for: Getting kicked out during the holidays or a slow market when your home hasn’t attracted buyers. Before agreeing to a kick-out clause, have a financial backup plan — bridge loan approval, HELOC, or enough savings to cover two mortgages for several months. Your buyer’s agent should help you stress-test this scenario before you sign.
Can I negotiate the kick-out period?
Yes. The standard is 48–72 hours, but you can negotiate for more time. Some buyers push for 5–7 days, which gives you more room to arrange financing or price-reduce your current home. Sellers may resist longer periods because it risks losing the backup buyer. Find a balance that works. Use our mortgage calculator to model worst-case dual-mortgage scenarios and check our glossary for home sale contingency details.