Contracts
In Michigan, what is the purpose of a 'kick-out clause' in a home sale contingency?
ATo allow the seller to raise the price after acceptance
BTo allow the seller to continue marketing the property and 'kick out' the contingent buyer if a better offer is received, unless the contingent buyer waives the home sale contingency✓ Correct
CTo allow the buyer to exit the contract without penalty
DTo kick out a co-buyer from the transaction
Explanation
A kick-out clause allows the seller to accept another offer and notify the original contingent buyer. The contingent buyer then has a specified period to waive the home sale contingency and proceed or allow the sale to terminate.
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