Browsing Category Reader Questions

What’s a Kickout Clause?

Before Mom Calls For Dinner

From time to time, I’ll see a house that’s still active on the market (I showed one on Wednesday in fact) but is under contract with a kick out clause. Right now, there are 6 such instances out of 1764 active listings in the Charlottesville MSA and MLS.

What’s a Kick out Clause?

A kick out clause is a chance for the seller and buyer to have their respective cakes and eat them, too.

Or, when a buyer wants to buy a home but hasn’t yet sold their current home, and the seller wants to accept the offer but not fully remove the home from the market.

If a house is under contract with a kick out clause, that means it’s under contract but the buyer most likely has a home sale contingency. If another buyer were to come along with an offer the seller wanted to accept, the seller would accept the second offer, subject to the first offer’s termination and give the buyer notice and give them 48 hours or so to remove their home sale contingency. If the buyer chooses to not remove the contingency (most likely because they cannot) the seller could kick out the first offer and accept the second one.

Seller’s happy, second buyer is happy, first buyer notsomuch.

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What is the timeframe for the new FHA loan limits to be available for consumers?

I love getting questions through my nifty Meebo widget in the sidebar.An answer to the question can be found here:HUD is required by the law to publish the new mortgage limits by March 14, 2008….  This data can be found here (pdf).The NAR sent a letter to HUD on February 13, 2008, urging HUD to implement the limits as quickly as possible.  The implementation schedule is complicated by the fact that Fannie Mae and Freddie Mac will be using the same limits above $417,000 and Office of Federal Housing Enterprise Oversight (OFHEO) Director James B.  Lockhart, III (Fannie and Freddie’s regulator) noted in a recent speech that implementation could take up to three months with an additional month for partial enactment.

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