A term that refers to a real estate contract contingency used when a home seller and buyer agree to place a house under contract with the understanding that the buyer must sell his current house before finalizing the new purchase. This clause is used most often in conjunction with a buyers' "right of first refusal."
Sellers with a kick out clause in the contract continue to market the home. If they receive another offer, the kick out clause specifies a time (usually 48 of 72 hours) in which the buyer must either remove the contingency and move forward to buy the house, or withdraw from the original contract and allow the seller to enter into a new contract with the new buyers.
See ► Real Estate Guide: Buyers -