A few things to know about the kick off clause
Football is serious business in the south.
It’s so serious that one guy asked me for a “kick-off” clause in his contract.
“A kick-off clause?” I asked. Don’t you mean a “kick-out” clause?
“No. I mean a kick-off clause,” he said. “If you send me an offer after kick off, I won’t respond until the next day.”
The laughs never end in this business and I wouldn’t have it any other way.
Due to the low inventory levels in the Nashville market, the use of these types of clauses are more common
For example, you want to buy a home, but you still need to sell yours first. So you write a offer to purchase another home contingent upon the sale of your current home. That sounds great to the buyer, but leaves the seller in somewhat of a bind.
What happens if the current home doesn’t sell?
What happens if another buyer comes along that can close tomorrow?
The kick off clause is designed to protect the seller in the event of a sale of home contingency or similar. It’s like a first right of refusal.
If another ready, willing and able buyer comes along, the seller can notify you that they are invoking the kick out clause. This gives you a few days to clear the contingency or your contract is cancelled.
This clause shifts some of the risk of the sale of the buyer’s current home from the seller to the buyer.
It’s a scary time for both the buyer and seller. And the success of these clauses is improved when you have great agents guiding you through the process.
Before you head down this path, make sure that you have a great agent on your side and you feel comfortable with the folks on the other side of the transaction.
This topic typically brings up a ton of questions. What are yours?