What Is a Kick-Out Clause in NH Real Estate?

🏡 What Is a Kick-Out Clause in NH Real Estate?

In New Hampshire markets like Plymouth, Campton, Thornton, Rumney, and throughout Central NH, sellers sometimes receive offers that include home sale contingencies.

To protect themselves and keep their property active, many sellers use a kick-out clause to maintain leverage while still accepting a contingent offer.

Here’s exactly how a kick-out clause works in NH.

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What Is a Kick-Out Clause?

A kick-out clause allows a seller to accept a buyer’s contingent offer while still showing the property and considering other offers.

If a better offer comes in, the seller can “kick out” the original buyer — unless that buyer removes their contingency within the allowed timeframe.

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How Long Does a Buyer Have to Respond?

Most kick-out clauses in NH give buyers:

• 24 hours

• 48 hours

• 72 hours

This is called the “Right of First Refusal” period — the buyer must decide quickly whether to proceed without their home sale contingency.

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When Sellers Use Kick-Out Clauses

NH sellers typically use kick-out clauses when:

✔ They accept an offer with a home sale contingency

✔ Their home is in a desirable area

✔ They expect other offers to come in

✔ They want to avoid long delays

✔ They need flexibility while still moving the deal forward

Kick-out clauses protect the seller from being locked into a weaker offer.

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What Buyers Should Know

Buyers must understand:

• The seller can continue marketing the property

• Another offer can bump them

• They may need to remove contingencies on short notice

• Removing a contingency increases risk

• Financing must be rock-solid to remove protections safely

This can put pressure on buyers who haven’t sold their current home yet.

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What Happens If the Buyer Removes Their Contingency?

If the original buyer removes their home sale contingency:

• Their offer becomes stronger

• They must close regardless of whether their home sells

• Earnest money may become at risk

• Sellers typically proceed with them

If they don’t remove the contingency, the seller can move forward with the new offer.

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Why Sellers Like Kick-Out Clauses

Sellers benefit because:

✔ They avoid being tied to a weak offer

✔ They can still capture higher or cleaner offers

✔ They gain leverage in negotiations

✔ It keeps the listing competitive

It’s one of the most seller-friendly tools in NH real estate.

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Keywords

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Jim Johnson Real Estate

Phone: 857-249-7392

Serving Plymouth, Campton & Central New Hampshire

Brokered by Three Hills Real Estate Service