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What is a Kick-Out Clause and How Do You Use It?

Every real estate transaction involves risk, whether you are the buyer or the seller. And during a real estate transaction, either party can include specific contingencies to help mitigate some of the risks. Common contingencies may allow either party to back out of a contract if specified conditions are not met, such as:

  • A satisfactory home inspection
  • A home appraisal that meets the lender’s requirements
  • Final approval of the buyer’s home loan


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