Contracts
An Indiana purchase contract subject to the sale of the buyer's existing home includes a kick-out clause. This means:
AThe buyer may be kicked out of the purchase at any time
BThe seller may continue marketing the property and if a better offer comes, may give the original buyer a specified period to remove the contingency or be kicked out of the contract✓ Correct
CThe seller must kick out the current tenant before closing
DThe buyer's agent may terminate the contract
Explanation
A kick-out clause (escape clause) lets the seller continue marketing even with an accepted contingent offer. If the seller receives another acceptable offer, the original buyer has a specified period (often 24–72 hours) to waive the contingency or release the seller.
Related Indiana Contracts Questions
- An addendum to a purchase agreement:
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- In Indiana, if a seller rejects a buyer's offer and makes a counteroffer, the original offer:
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- A buyer includes an inspection contingency in their purchase offer. After the inspection, the buyer may:
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