Terms to Know When You're Dealing with Real Estate - Part 1
Every professional sector has its distinct terminology which the average layman doesn't understand. Over the next year, my monthly blog will present real estate words in layman's terms that even the most 'average bear' can understand and use to their real estate adventures.
Just the term, "Kick-out Clause" may seem severe or rude, but it can prove to be beneficial to both the buyer and seller. Rather than using "Kick-out Clause", some will refer to this as "first right of refusal". This clause is used when the buyer needs or wants to sell another property before they purchase.
In a seller's market, like we're experiencing today, a klck-out or right of first refusal clause gives the seller peace of mind in that the property can continue to be shown for sale. Also, it allows for the seller to accept another offer which may be better as long as the new offer does not contain any contingencies other than financing. This clause makes the seller more comfortable accepting a contingency on the sale of a property.
Buyers find this kick-out or right of first refusal clause helpful when they need or want to sell their current property before purchasing. Without this type of clause, the seller probably would not entertain a contingency clause on the sale of their current property.
The Kick-out/First Right of Refusal Clause is one of the many strategies and approaches in buying or selling a home for you and your loved ones. To ensure that your interests are protected, contact a professional real estate advisor.
Contact Jack Little at 843-364-2869 or email@example.com.