Question 1

What is a kick-out clause in a Florida real estate contract?

Accepted Answer

A kick-out clause (also called a release clause, escape clause, or bump clause) is a contractual provision in a real estate purchase agreement that allows the seller to continue marketing the property after accepting an offer that contains a contingency (typically a home-sale contingency). If the seller receives a better offer, the seller can "kick out" the original buyer by giving them a specified period (usually 24-72 hours) to either remove their contingency and proceed with the purchase or withdraw from the contract. The kick-out clause protects the seller from being locked into a contingent contract while a better, non-contingent buyer is available.

Question 2

How does a kick-out clause work in practice in Florida?

Accepted Answer

Step-by-step: (1) Buyer A submits an offer with a home-sale contingency (their purchase depends on selling their current home). (2) The seller accepts Buyer A’s offer but includes a kick-out clause. (3) The seller continues to market the property. (4) Buyer B submits a non-contingent offer. (5) The seller notifies Buyer A that they have a specified time (the kick-out period, typically 24-72 hours) to remove the home-sale contingency or release the property. (6) Buyer A either: removes the contingency (commits to buying regardless of whether their home sells) and the seller must honor the original contract, or fails to remove the contingency and the original contract is terminated, releasing the seller to accept Buyer B’s offer. The seller must negotiate the kick-out clause terms in advance.

Question 3

What should Florida buyers and sellers know about kick-out clauses?

Accepted Answer

For sellers: the kick-out clause keeps the property active on the market, prevents being locked into a weak contingent offer, creates pressure on the contingent buyer to accelerate their home sale, and provides a defined process for transitioning to a better offer. For buyers: being subject to a kick-out clause creates uncertainty (they may be displaced by a non-contingent offer), the kick-out period may be too short to arrange financing without the home-sale contingency, and they should negotiate the longest possible kick-out period and clearly define what constitutes a "bona fide" replacement offer. Both parties should have their attorneys review the kick-out clause to ensure it clearly defines the triggering events, notice requirements, and timeframes.

Kick-Out Clause

Kick-Out Clauses in Florida Real Estate Contracts

How It Works

Seller Benefits

Buyer Considerations

Related Terms

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