REIN First Right of Refusal
- Adam Garrett
- Sep 9, 2023
- 2 min read
Updated: May 16
A first right of refusal, also known as a "kick-out clause" is a way to protect the seller when the buyer has a significant contingency that is unusual, such as a home sale contingency. Below I'll be sharing the main form on the subject used in Hampton Roads (in addition to the main picture above) as well as when to use one.
When to Use a First Right of Refusal
I typically don't recommend that buyers initiate 1st right of refusals, but acquiescing at times to seller requests for them. It sometimes can be good for a seller to initiate a 1st right of refusal. That said, I've seen at least 1 case where a seller requesting one scared off a buyer, so be forewarned that is a risk you take with one.
When there's a significant contingency, such as a home sale contingency, these can be warranted.
Form Content
Here is the main content, with the font in bold (excepting (a, b, c) being just part of my templates that is modified according to the scenario:
Signing at Bottom
Buyer Beware
If you have a kickout clause in place, have an extension plan in advance for what you will do if you are kicked out of the contract by another party. For instance, if you are selling with a home sale contingency in an offer, have things like temporary housing, storage (if applicable), etc. in mind. You may even want to have a home purchase contingency going on the property you're selling, but I typically don't recommend those because like 1st right of refusals, they can scare people away.
All images courtesy Real Estate Information Network
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