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

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

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TL;DR

A kick-out clause (also called a release clause) lets a Maryland seller accept an offer contingent on the buyer selling their current home, while keeping the property on the market for other buyers. If a second offer comes in, the seller gives the first buyer 48–72 hours to remove the contingency or walk away — preserving the seller's ability to take the stronger offer.

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

TL;DR: A kick-out clause lets a Maryland seller accept a contingency offer (usually a home sale contingency) while keeping the property active on the market. If a non-contingent offer comes in, the seller gives the first buyer 48–72 hours to remove their contingency and proceed or release the contract. It protects sellers from being locked out of a better offer.

How a kick-out clause works in Maryland

When a buyer makes an offer contingent on the sale of their current home, the seller faces a choice: reject the contingent offer and wait for a non-contingent buyer, or accept it and hope the buyer's home sells. A kick-out clause creates a third option.

Under a kick-out clause:

Why sellers use kick-out clauses in Bethesda

In Bethesda's 2026 market (34–42 day DOM, 2.9 months inventory), non-contingent buyers are the norm. But as the market cools from its 2021–2022 peak, more buyers need to sell their existing home first — and sellers who won't accept any contingency may lose qualified buyers unnecessarily. A kick-out clause threads the needle: you get a buyer in contract today while still accepting backup offers.

The Maryland REALTORS Contract language

The Maryland REALTORS Standard Contract includes a Home Sale Contingency addendum that spells out the kick-out trigger and response window. The typical window is 48–72 hours from delivery of written notice. Both parties must agree to the window length at the time of contract — this isn't something you can negotiate after a backup offer arrives.

Risks and considerations for buyers

If you need to sell your current home before buying, a kick-out clause means you can get a home under contract — but you could lose it if a non-contingent buyer appears. This is a real risk in competitive areas. Some buyers respond by listing their current home aggressively before writing an offer, or by exploring bridge financing so they can remove the contingency quickly if kicked.

When to use vs. reject a kick-out clause

As a seller, accept a kick-out clause when: the market is slower, the contingent buyer is otherwise strong, and you want to keep the deal alive without being locked in. Reject it when you have strong non-contingent interest — a kick-out clause creates complexity that non-contingent buyers prefer to avoid.

FAQ

People Also Ask

What is a kick-out clause in Maryland real estate? +
A kick-out clause lets a seller accept a contingency offer (usually a home sale contingency) while keeping the home on the market. If a non-contingent offer comes in, the seller gives the first buyer 48–72 hours to remove their contingency or walk away — at which point the seller can accept the backup offer.
How long is the kick-out window in Maryland? +
The standard kick-out response window in Maryland is 48–72 hours from written notice. Both parties agree on the window length at the time of contract. During this window, the contingent buyer must decide whether to remove their contingency or release the contract.
Should I accept a home sale contingency with a kick-out clause in Bethesda? +
It depends on your market position. If you have strong non-contingent interest, decline and wait. If the contingent buyer is otherwise qualified and no better offer is on the table, a kick-out clause lets you stay in the game while still accepting a stronger offer if one appears.
What happens if the buyer doesn't respond to a kick-out notice in Maryland? +
Under the Maryland REALTORS Contract, if the contingent buyer doesn't respond within the kick-out window, the seller can terminate the contract. The buyer receives their earnest money deposit back since the termination is triggered by a contract provision, not buyer default.
Can a buyer remove a home sale contingency after getting kicked out? +
Yes — removing the contingency is the whole point of the kick-out window. The buyer essentially commits to purchasing regardless of whether their current home sells. This is a significant financial risk if the home doesn't sell, so buyers often explore bridge financing or HELOC access before committing to remove the contingency.
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