Contracts
In Iowa, a purchase agreement that is subject to a 'kick-out clause' allows:
AThe buyer to kick out any inspection contingency at any time
BThe seller to continue marketing the property and accept a new offer, giving the original buyer a set time to waive contingencies or cancel✓ Correct
CThe buyer's lender to kick the buyer out of the transaction
DEither party to terminate the contract within 72 hours for any reason
Explanation
A kick-out clause (also called a right of first refusal clause) allows the seller to continue marketing the property while under contract. If the seller receives another acceptable offer, the original buyer is given a specified period (usually 24–72 hours) to waive their contingencies or release the seller from the contract.
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