What is a kick out clauseA kick out clause refers to language in the contract which permits the seller, in some cases, to cancel the contract with the current buyer.  The current buyer is “kicked out” of contract.  Another expression for the same idea is a “release clause” – the seller can release the buyer under some situations.

This is a bit of a surprise to most Silicon Valley home buyers, who tend to think that they can walk away from a property during their contingency time frames, but a seller is stuck with them, no matter what.  That’s simply not true!

In the last few years, both the CAR and PRDS contract forms have been updated.  Both now include language that specifies the seller’s right to cancel the contract.  Both parties have rights and responsibilities. Failing to do what one has promised to do in the purchase agreement could potentially find that home buyer out of contract and without that home to buy.  There are many shades of gray, and few things are automatic.  If a seller is going to give a buyer the boot, there will be a “notice to perform” tendered first.

Let’s talk specifics.  When can the seller kick out or release the buyer?

  • If the contract is subject to the sale of another home, there may be a release clause in the agreement stating that if the seller gets a better offer, the buyer may have 72 hours to perform (sell the home) or be let go.   This is the most commonly seen use for the phrase.  In this case, the buyers may have done everything possible to sell their current home but not been successful, and they could lose the house if that seller gets a better offer.   Normally there is a period of time in which the buyer is protected – time to get the house sold. It often ranges from 2 to 4 weeks.
  • With bank owned homes, several lending institutions want to keep offering the home for sale even after there’s a ratified contract so that they keep open the possibility of the home selling for more. It is understandable that they want to mitigate their loss, but it makes buyers in contract very nervous about spending money on appraisals and inspections!  Most of the “risk” is on the buyer’s side.
  • If there’s a short sale, the seller has a contingency for bank approval.  If a better offer comes along while waiting for bank approval, the seller can usually release the buyer without much difficulty.

This concept is most likely to be utilized in purchase agreements when it’s a bank owned, short sale or contingent upon the sale of another property deal.  But if a buyer defaults by not depositing money to title, not providing proof of funds in the specified time frame or failing to do some other contractually promised items, the seller may be able to kick that buyer out or release him or her.

  1. 3 beds, 2 baths
    Home size: 1,286 sq ft
    Lot size: 6,725 sqft
  2. 3 beds, 2 baths
    Home size: 1,691 sq ft
    Lot size: 9,408 sqft
  3. 2 beds, 3 baths
    Home size: 1,360 sq ft
  4. 4 beds, 3 baths
    Home size: 2,271 sq ft
    Lot size: 13,882 sqft
  5. 4 beds, 2 baths
    Home size: 2,044 sq ft
    Lot size: 6,390 sqft
  6. 4 beds, 2 baths
    Home size: 1,412 sq ft
    Lot size: 6,425 sqft
  7. 3 beds, 3 baths
    Home size: 1,693 sq ft
    Lot size: 1,476 sqft
  8. 4 beds, 3 baths
    Home size: 1,910 sq ft
    Lot size: 3,841 sqft
  9. 3 beds, 2 baths
    Home size: 1,266 sq ft
    Lot size: 6,290 sqft
  10. 3 beds, 1 bath
    Home size: 1,073 sq ft
    Lot size: 8,502 sqft

See all Real estate in the Cambrian community.
(all data current as of 3/21/2018)

Listing information deemed reliable but not guaranteed. Read full disclaimer.


by Transposh - translation plugin for wordpress
Mary Pope-Handy
Sereno Group Real Estate
214 Los Gatos-Saratoga Rd
Los Gatos, CA 95030
408 204-7673
Mary (at) PopeHandy.com
License# 01153805

Selling homes in
Silicon Valley:
Santa Clara County,
San Mateo County, and
Santa Cruz County.
Special focus on:
San Jose, Los Gatos,
Saratoga, Campbell,
Almaden Valley,
Cambrian Park.
Let’s Connect
Find Mary on FacebookFollow Mary on Twitter
RSS FeedFollow Mary on YouTube

Please see more icons
at the bottom of the page.

The real estate search
Use the widget below to browse properties which are for sale, under contract (pending) or sold. Want to view only homes which are available now? Use the "find a home" link on the menu above (next to the "home" button).
Mary’s other sites & blogs
Valley Of Hearts Delight
Santa Clara County Real Estate,
with an interest in history

Silicon Valley relocation info

Silicon Valley real estate,
focus on home selling

Silicon Valley Real Estate Report
Silicon Valley real estate
market trends & statistics
Mary’s Blog Awards
Top 25 real estate blogs of 2018 by RentPrep2018 RentPrep.com's list of top 25 real estate blogs to follow

Top 25 real estate blogs 2016
2016: Personal Income's list of top 25 real estate blogs.

Best Realtor blog award
2016: Coastal Group OC's list of best Realtor blogs

The 2009 Sellsius list of top 12 women real estate bloggers
2009: Sellsius list of top
12 women real estate bloggers

Mary Pope-Handy's Live in Los Gatos blog won the 2007 Project Blogger contest, sponsored by Inman News and Active Rain

2007: Mary Pope-Handy and Frances Flynn Thorsen win the Project Blogger Contest for Mary's Live in Los Gatos blog. The contest was sponsored by
Active Rain and Inman News.

Non blog award

Best real estate agent in Silicon Valley from the San Jose Mercury News poll of readers in 2011
"Best real estate agent
in Silicon Valley"

2011 readers' poll,
San Jose Mercury News

Site Statistics
  • Users online: 2 
  • Visitors today : 1,471
  • Page views today : 3,978