Sunday, August 5, 2007

· A clause in a real estate sales contract that gives a seller the right to terminate a contract with a buyer without penalty if a better offer comes along. To keep the contract alive, the first buyer must remove some or all of the contingencies within a certain amount of time -- 72 hours is common.

· A status noted with the abbreviation "KO" in multiple-listing services.

· A contingency that's often used when a buyer makes an offer on a house with the understanding that he must sell his current home before closing on the new one.

· An arrangement that can help a buyer, by making his less-desirable offer more acceptable to sellers by reducing their risk.

· An arrangement that can help sellers protect themselves from losing valuable time on the market, in case the original deal falls through.

· A compromise that must be carefully worded to protect the interests of both the seller and the buyer.

· A situation that shouldn't make sellers complacent, even though many people consider their house sold the moment they have a ratified contract in hand. To take full advantage of the power of a kick-out clause, sellers must continue to market their home aggressively (or insist that their agent do so on their behalf).