Contracts
What is a 'kick-out clause' in an Illinois real estate contract?
AA clause allowing either party to terminate the contract without cause
BA clause allowing the seller to accept a better offer if the buyer fails to waive a contingency within a specified time✓ Correct
CA clause requiring the buyer to vacate the property after 30 days if they default
DA clause that extends the contract indefinitely until the buyer obtains financing
Explanation
A kick-out clause (also called a 'first right of refusal' clause) allows a seller to continue marketing the property after accepting an offer that includes a home-sale contingency. If the seller receives another acceptable offer, the original buyer must waive the contingency within a specified period or the seller may 'kick out' the original buyer and proceed with the new offer.
Related Illinois Contracts Questions
- A counteroffer by the seller:
- Under the Illinois Residential Real Property Disclosure Act, which of the following properties is EXEMPT from disclosure requirements?
- In Illinois, the attorney review period in a standard residential contract begins:
- In Illinois, the attorney review period in a residential real estate contract typically lasts:
- A real estate purchase contract that contains a contingency for the buyer to sell their current home is known as a:
- A buyer's offer is submitted and the seller responds with different terms. This is known as a:
- If a seller accepts a buyer's offer and then receives a higher offer before communicating acceptance, the seller may:
- An earnest money deposit in Illinois is typically held by:
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →