Contracts
What is the purpose of a 'kick-out clause' in a Pennsylvania real estate contract?
AIt allows the seller to terminate the listing agreement if the broker fails to perform
BIt allows the seller to continue marketing and accept a better offer, with the original buyer having a period to remove contingencies✓ Correct
CIt allows the buyer to cancel the contract if the property fails inspection
DIt gives the lender the right to accelerate the loan if the borrower defaults
Explanation
A kick-out clause (also called a release clause or bump clause) allows a seller with an accepted contract contingent on the buyer's home sale to continue marketing. If the seller receives another acceptable offer, the original buyer is 'kicked out' unless they remove the home sale contingency within a specified period (typically 24–72 hours). This protects sellers from being locked into contingent contracts indefinitely.
Related Pennsylvania Contracts Questions
- When a Pennsylvania buyer waives the home inspection contingency, the buyer is accepting:
- Under Pennsylvania's RELRA, for how long after a real estate transaction must a broker maintain copies of all transaction records?
- A Pennsylvania seller's listing agreement typically provides that the seller owes commission if a sale occurs within the listing term when a ready, willing, and able buyer is produced. 'Ready, willing, and able' means the buyer:
- A Pennsylvania Agreement of Sale clause stating 'This agreement is contingent upon the property appraising at or above the purchase price' is a(n):
- What is 'specific performance' as a remedy in a Pennsylvania real estate contract dispute?
- A 'rent-to-own' arrangement in Pennsylvania where a portion of rent credits toward the purchase price should be:
- A real estate contract signed under duress is:
- A 'backup offer' in Pennsylvania is made when:
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →