Contracts
A South Dakota real estate purchase contract includes a 'kick-out clause.' This allows the:
ABuyer to cancel for any reason within 72 hours
BSeller to accept another offer and terminate the contingency-laden contract if the buyer does not waive contingencies✓ Correct
CLender to reject the buyer's loan application
DBuyer's agent to negotiate directly with the seller
Explanation
A kick-out clause allows the seller to continue marketing the property and, upon receiving another offer, give the current buyer a set time to waive their contingency or lose the contract.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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