Ask an Agent: What Does "Contingent w/No Kick-Out" Mean?
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In this week's installment of Ask An Agent, a reader asks a fairly common question that new home buyers have: What is meant when a listing says "Contingent w/no kick-out?" Coldwell Bankers' James Andrew Sands offers up some insight.
Question: I have been casually looking at homes to buy in the DC area using UrbanTurf, and I sometimes come across the language “Contingent w/ no kick-out” in the status field. What exactly does this mean? I get the feeling that it means that an offer has already been accepted pending some type of approval. If a property is in this status, does it still make sense for me to submit an offer?
Answer: When the status on a property is listed as "Contingent w/no kick-out" it means that an offer has been presented to the seller with contingencies, and if those contingencies are not satisfied, then the seller may take another offer.
A "kick-out" clause is sometimes used if a seller wants to reserve the option to accept a better offer, once the property is under contract. A "no kick-out" clause means that the seller relinquishes this option once his/her home is under contract.
So, in your example "Contingent w/no kick-out" means that the seller has accepted an offer with contingencies, but cannot accept another offer unless those contingencies are not satisfied.
If you really like the property, by all means submit your offer with the understanding that you will be in the position of waiting to see if various requirements for the first offer are satisfied. My advice is to always work with a realtor who has access to the most up-to-date listing information, so you are never in a situation where you are bidding on property that may ultimately not be available for you to purchase.
If you would like to submit a question for Ask An Agent, send an email to editor@urbanturf.com.
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This article originally published at https://dc.urbanturf.com/articles/blog/ask_an_agent_what_does_contingent_w_no_kick-out_mean/1340.
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