How Do Kick-Out Clauses Work in VA?

When selling properties, you hope for everything to fall into place effortlessly. Ideally, you find a skilled agent and confirm that you don’t need to do tons of repairs. Then, you list the house, and, within days, multiple offers start rolling in.

You pick the best one, they pay up, and the deal closes. What a dream!

Unfortunately, most real estate transactions do not happen this way. You might only receive one or two offers; the best one comes with strings attached.

Before you get stuck in a limbo, know there is such a thing as a kick-out clause.

Selling houses in Virginia always carries some level of risk, and smart sellers look for ways to protect themselves. These are your safety net.

Understanding Them

They are a special provision you can include in a real estate contract. It lets a seller accept a contingent offer while keeping the house available on the market. If another offer comes in, you have the right to “kick out” the first buyer, unless they quickly removes their contingency, often within 72 hours.

Here is how they typically work:

1. Step 1: Accept a Contingent Offer. You agree to sell your house, but only if both of you meet certain conditions.
2. Step 2: List Your Property as “Contingent With Kick Outs.” Instead of marking your property as fully under contract, it shows up with this special status, letting others know it is not entirely off the market.
3. Step 3: Receive a Better Offer. Another one steps in with stronger financing or fewer contingencies, and you prefer to move forward with them.
4. Step 4: Inform the Original Buyer. Notify the first buyer that they have a set period to drop their contingency and proceed with the purchase.
5. Step 5: Proceed or Issue a Refund. If the original buyer cannot or will not remove their contingency, you are free to accept the new offer and refund the former’s earnest money.

This is a backup plan for sellers. Of course, you don’t want to miss out on better opportunities, and you also want to give buyers a fair shot. It’s protection for both parties!

When Do Sellers in Virginia Need One?

Not every sale requires one. In fact, plenty of transactions close just fine without one. Certain situations, however, prove that having this clause in place makes a difference.

Contingent Offers

A contingency clause in a real estate contract basically says, “This deal only pushes through if we do this and that within a specific timeframe.”

For example, the buyer might have to secure financing or sell their current property first. From a seller’s perspective, these contingencies introduce uncertainty and slow down the timeline.

Accepting a contingent offer without one means you’re betting your sale on someone else’s ability to sort out their affairs.

Financing Risks

Remember, a buyer may look great on paper but still run into issues when it comes to securing a mortgage. Perhaps their credit score isn’t as strong as they thought, or they lost their job mid-process.

As a seller, those instabilities fall on you. These can ensure your properties remain available for a better-qualified buyer.

Seller’s Markets

When there are more buyers than homes, it’s a seller’s market. Buyers will do everything possible to secure a place; you hold all the power!

Imagine trying to navigate such a market without one. Many buyers can present higher prices, but they can’t even reach you because a single offer already ties your hands. It’s just like having houses for sale without listing them.

Tight Timelines

Sometimes, selling is more about necessity than profit. You could be reassigned for military deployment, accept a new job in another city, or decide to relocate for family reasons. Waiting months for a buyer’s contingency to resolve simply is not an option.

This offers peace of mind in time-sensitive circumstances. If someone else is eager to close faster, go ahead and sell to them!

The Advantages and Downsides

For buyers, the benefits are pretty clear. The clause gives them flexibility, allowing them to line up their finances before making a significant purchase. It even helps them avoid juggling two mortgages at once!

However, the pressure is also higher, as another buyer could swoop in and push them out of the deal.

What about sellers? How do you benefit from them?

1. Active Listing. Your home does not disappear from the market just because you accept a contingent offer. It stays visible and continues to attract buyers.
2. Strong Negotiating Position. Knowing you have the power to move on to another offer keeps you in control. You do not have to put your plans on hold.
3. Faster Closing. A backup offer may motivate the original buyer to act fast. If it doesn’t, you already have another buyer who can take over.

Are there drawbacks you should watch for? Yes. Here are the two most notable:

1. Extra Paperwork. Adding these makes the contract more complex. You must carefully manage deadlines, notices, and legal language. That is more work for both you and your agent!
2. Second Buyer Backing Out. A new buyer may show up and then leave. Perhaps they’ve come to terms with their reluctance to address the failed repairs or renovations, or the cleanup of the dirt they encounter during their visit. When they walk away, you go right back to square one.

They are not magic wands. Sellers should weigh the advantages against the potential woes.

Should You Use it Here?

Every real estate decision deserves serious thought.

Again, it keeps your listing active, gives you leverage in negotiations, and inspires buyers to close faster. At the same time, it brings more paperwork and the chance of being disappointed if the backup offer gets cancelled.

That said, it’s crucial to learn about your local market. For instance, as of April 2025, the U.S. housing market had nearly 34% more sellers than buyers searching for homes.

We have not seen the number of buyers this low in over a decade, aside from April 2020, when the pandemic froze the world. In a market like that, protecting yourself with this is important.

You must also evaluate your buyer’s financial standing. Let go of your expectations and face the realities! Do they truly have the resources to close? Are they also hoping to sell their home in the same market to be able to afford yours? These details will guide you to the right path.

Finally, there is always another option, like selling to a cash home buyer. These companies purchase houses directly, eliminating the financing headaches and lengthy timelines associated with traditional financing.

In Virginia, the median number of days homes stay on the market recently sat at 31 days in July 2025. That is a whole month of waiting with no guarantees. A cash buyer eliminates all that wondering through instant sales.

Cava Buys: Meet Your Buyer Now

Ready To Sell?

Would you rather go through the traditional selling process with contingencies and waiting for the best buyer, or sell your home as-is and get cash right when you want it?

At Cava Buys, selling in Virginia Beach or Norfolk is always easy and sure, even without kick-out clauses. We purchase all types of properties for all kinds of reasons! Whether it is an aging manufactured home you wish to replace or a vacant lot with squatters, our team will say yes.

Our method is straightforward. Tell us about your house, get a fair cash offer, and close the deal according to your plans.

Offers from Cava Buys are completely free and come with no obligation. Our team will never pressure you to accept what we present, but know that we are here, ready to push you forward in life by buying homes.

Contact us today to learn more! Request an offer online or call us at (804) 215-0631.

Frequently Asked Questions

Here are some quick answers.

What Is It?

It is generally a contract provision that lets sellers accept contingent offers while keeping their property on the market for other buyers.

What Is an Example of one?

Suppose a buyer wants to purchase your home but needs to sell theirs first. You accept their offer, but with one that says if another buyer makes a stronger offer, the first buyer has 72 hours to drop their contingency or step aside.

What Happens if You Receive a Backup Offer for a Property?

You must notify the original buyer and give them their contractually agreed-upon timeframe for making a move. The buyer may then either proceed with the sale or back out.

Can a Buyer Back Out of an Accepted Offer on a House in Virginia?

Yes, buyers can back out, often requiring you to search and wait for new ones.

Should Sellers in VA Use These?

It’s worth considering if you’re selling in a seller’s market, worried about contingencies and financing risks, or want more flexibility to sell my house fast Richmond.