A seller in Roanoke, Virginia accepts an offer that includes a kick-out clause allowing the seller to continue marketing the property. The seller receives a second, stronger offer. The seller notifies the first buyer of the new offer and gives the first buyer 72 hours to remove the home sale contingency. The first buyer does not respond within 72 hours. What is the most likely outcome?
Correct Answer
A) The seller may terminate the first contract and proceed with the second offer after the 72-hour notice period expires without response
A kick-out clause (also called a right of first refusal or bump clause) allows the seller to continue marketing the property and, upon receiving a better offer, to notify the first buyer and give them a specified time (here, 72 hours) to remove the contingency. If the first buyer does not respond within that period, the seller may terminate the first contract and accept the second offer. This is a standard and enforceable provision under Virginia contract law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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