What Is a Kick-Out Clause in a Minnesota Home Sale?
When a Minnesota seller accepts an offer with a home sale contingency under the MNAR Purchase Agreement's Option 1, they retain the right to keep marketing the home. If a competing offer arrives, the seller can deliver written notice to the original buyer, triggering a window — typically 72 hours — in which the buyer must either remove the home sale contingency or cancel the contract and recover their earnest money. This mechanism, known as the kick-out clause, is one of the most misunderstood provisions in the Minnesota Purchase Agreement and one of the highest-pressure situations a move-up buyer can face.
By Darin Bjerknes | May 21, 2026
I talk to move-up buyers in Woodbury, Lake Elmo, and Stillwater almost every week. They've found the home they want. They've submitted an offer — contingent on selling their current home, which makes complete sense. The seller accepted. Things feel good.
Then I get the call: "We just got a notice from the seller. They have another offer. We have 72 hours. What do we do?"
That moment is exactly what the kick-out clause is designed to create — and if you've never been through it, it can feel overwhelming. The good news: if your agent prepared you for it in advance, your decision in those 72 hours is far clearer than it feels in the moment. Here's everything you need to know.
Why Sellers Accept Contingent Offers — And Why They Include a Kick-Out Clause
A home sale contingency gives move-up buyers the ability to purchase a new home before their current home is sold. It's one of the most common ways families navigate the timing gap in the east metro — you've found the right house in Lake Elmo but your Woodbury home isn't listed yet, or you're under contract in Cottage Grove but haven't closed.
From the seller's side, accepting a contingent offer is a calculated risk. They want the deal, but they don't want to sit idle if the buyer's current home never sells. The kick-out clause is the seller's insurance policy. Under Option 1 of the MNAR (Minnesota REALTORS®) Purchase Agreement, the seller accepts the contingent offer but retains the right to continue marketing the property and accepting backup showings.
If a stronger offer arrives — whether it's non-contingent, higher price, or simply cleaner terms — the seller has the contractual right to send written notice to the original buyer. That notice starts the clock.
It's worth noting: sellers don't have to have a "better" offer to activate the kick-out clause. The MNAR form allows them to demand contingency removal "for any reason or for no reason at all." What they're really saying when they sign an Option 1 agreement is: I'm willing to wait, but only to a point.
The 72-Hour Window: What Actually Happens
When a seller triggers the kick-out clause in Minnesota, they deliver written notice to the buyer (through their agents). The typical timeframe written into the MNAR Purchase Agreement is 72 hours, though contracts can specify 48 or even 24 hours — so read yours carefully.
During those 72 hours, the buyer has two choices. Neither is easy, but both are legitimate paths.
Option 1: Remove the home sale contingency and proceed. The buyer confirms in writing that they are moving forward with the purchase regardless of whether their current home has sold. To remove the contingency under MNAR Option 1, the buyer must provide the seller with a valid purchase agreement on their current home — not just a verbal commitment, not just proof of pre-approval on a new loan. An executed purchase agreement showing a buyer is under contract on the sale side.
If the buyer doesn't yet have their own home under contract, removing the contingency this way is extremely difficult. They can't simply assert financial ability to proceed — the form specifically requires a purchase agreement as evidence.
Option 2: Cancel the contract and recover earnest money. If the buyer cannot provide the required purchase agreement, or simply decides this is not the right time to press forward, they can cancel. Under the MNAR Purchase Agreement, when a buyer cancels in response to a valid kick-out notice — and the contingency was the reason — the earnest money is returned. The seller is then free to proceed with the competing offer.
What the buyer cannot do: ignore the notice and run out the clock hoping the situation resolves itself. The notice has a hard deadline. Miss it and the seller can proceed with cancellation.
The Earnest Money Question
One of the first things buyers ask me when they get a kick-out notice: "Do I lose my earnest money if I walk away?"
In a properly structured contingent transaction, the answer is no. Under the MNAR Purchase Agreement, when a buyer cancels in response to a kick-out notice due to inability to remove the home sale contingency, earnest money is protected and returned.
This is a critical distinction from other default scenarios. If a buyer simply walked away without a valid contingency reason, they'd risk losing the earnest money. But a contingency cancellation, when handled correctly within the notice window, returns the money to the buyer.
This protection is part of why working with an agent who understands Minnesota contract mechanics matters so much. In my recent post on earnest money in Minnesota, I covered how MN Statute 82.75 requires that earnest money be held in the listing broker's trust account — not with a neutral escrow company as buyers often assume from what they've seen in other states. That's relevant here too: when earnest money is returned after a contingency cancellation, it's released from that listing broker account. Getting the paperwork right on the cancellation is what ensures that release happens cleanly.
How to Prepare Before You Ever Get a Kick-Out Notice
The biggest mistake I see with move-up buyers in the east metro is treating the kick-out clause as a hypothetical until it isn't. Here's what I coach every buyer who submits a contingent offer:
Get your current home on the market immediately. In Washington County's spring 2026 market, where inventory sits around 1,308 active listings and homes are averaging just 26 days on market, a well-priced home in Woodbury or Stillwater can move quickly. The moment you go under contract on a purchase with a home sale contingency, your listing should be active or about to be.
Get your own home under contract before you fall in love with a house. The strongest position you can be in when a kick-out notice arrives is having a signed purchase agreement on your sale side. That piece of paper is exactly what the MNAR Option 1 form requires to remove the contingency. Without it, your options narrow dramatically.
Know the parallel close option. Some move-up buyers in Woodbury and Lake Elmo successfully close both transactions on the same day. If you have a firm closing date on your sale and your purchase closing can align, removing the contingency becomes viable because you have a clear path to funds. Your agent and your lender need to be coordinating this months in advance — not during a 72-hour window.
Talk to your lender before you're under contract. Some buyers can qualify for a new mortgage without selling their current home — either through a bridge loan, a HELOC, or by qualifying for both payments simultaneously. If that's the case for you, removing the contingency doesn't require a sale agreement at all. It requires a lender letter confirming ability to close. Know this before the clock starts.
Understand the emotional side of the decision. When a kick-out notice arrives, it rarely arrives at a convenient moment. I've seen buyers get these notices while traveling for work, on weekends, and in the middle of other stressful life events. Having a clear conversation with your family before the offer is ever submitted — "here's what we will do if the seller kicks us out" — means the 72-hour window doesn't force an emotional decision. It executes a plan you already made.
What Sellers in the East Metro Should Know
If you're the seller in this scenario, the kick-out clause is your friend — but it has to be structured correctly in the purchase agreement from day one.
In the spring 2026 east metro market, I'm seeing more contingent offers as move-up buyers try to time two transactions. Accepting one with a kick-out clause can make sense, especially if you're getting full price or close to it and the buyer's current home is in good condition and priced competitively.
The risk isn't in accepting the contingent offer. The risk is accepting it without a kick-out clause, or accepting one with a kick-out clause but not actively continuing to market the property and stay ready to act on competing interest. A kick-out clause that you never use doesn't protect you — you have to be willing to deliver the notice if a better offer comes in.
One more thing: the notice has to be properly delivered. Verbal notice doesn't start the clock. Your agent needs to send written notice through the right channels, and the 72-hour window runs from that documented delivery. Done correctly, this is clean and professional. Done sloppily, it creates disputes.
FAQ: Kick-Out Clauses in Minnesota Home Sales
What triggers the kick-out clause in a Minnesota Purchase Agreement?
Under MNAR Option 1, the seller can trigger the kick-out clause at any time after accepting a contingent offer — for any reason, or no reason at all. The most common trigger is receiving a competing offer from a non-contingent buyer or a buyer with better terms. Once the seller delivers written notice, the buyer's response window begins.
How long does a buyer have to respond to a kick-out notice in Minnesota?
The timeframe is negotiated when the original offer is written and accepted. Most Minnesota purchase agreements specify 72 hours, but 24 and 48 hours are also used. The clock starts when the written notice is formally delivered to the buyer (through their agent). Weekends and holidays typically count — the form uses calendar days, not business days, so read your specific agreement carefully.
What proof does a buyer need to remove a home sale contingency in Minnesota?
Under MNAR Option 1, the buyer must provide the seller with an executed (signed) purchase agreement on the buyer's current home. Proof of pre-approval or financial ability alone is not sufficient. The seller is entitled to an actual binding contract showing the buyer's home is under contract to be sold.
Does the buyer lose their earnest money if they cancel in response to a kick-out notice?
No — if the buyer cancels the contract because they cannot satisfy the kick-out clause requirements within the response window, the earnest money is returned. This is a contingency-based cancellation, which is protected under the terms of the Minnesota Purchase Agreement. The earnest money held in the listing broker's trust account (per MN Statute 82.75) is released back to the buyer.
Can a seller use the kick-out clause just to get out of a contingent deal, even without another offer?
Yes. Under MNAR Option 1, the seller can demand contingency removal "for any reason or no reason at all." There is no requirement that another offer exist. In practice, most sellers only exercise this right when they have genuine competing interest, since canceling a legitimate deal without a backup leaves them back on the market.
HowTo: Responding to a Kick-Out Notice in Minnesota
Step 1: Confirm the notice is valid and the clock has started
Ask your agent to verify that written notice was formally delivered and document the exact time and date. This is the baseline for your 72-hour window.
Step 2: Contact your listing agent immediately
If your current home isn't listed yet or isn't under contract, call your listing agent right now. The question is whether an acceptable purchase agreement can be in place before the window closes. In some cases, this is possible with aggressive pricing and quick action.
Step 3: Call your lender
Determine whether you can qualify for the new purchase without the sale proceeds. If you have equity, a bridge loan or HELOC could fund the gap. If you can document ability to close without the sale, your options for removing the contingency expand significantly.
Step 4: Make the go/no-go decision with your agent
Weigh the risk: do you have the required purchase agreement, or a clear path to removing the contingency? If yes, removing it and proceeding is a legitimate option. If no, accepting the earnest money return and stepping aside may be the right call — especially if the right home for your family is still out there.
Step 5: Respond in writing before the window closes
Whatever you decide, confirm it in writing before the deadline. If you're removing the contingency, provide the purchase agreement. If you're canceling, submit the cancellation documentation with your agent. Do not let the window expire without a documented response.
Thinking about making a contingent offer — or facing a kick-out notice — in Woodbury, Stillwater, Lake Elmo, or anywhere in the east metro? This is exactly the kind of situation where having an agent who's worked through these mechanics matters. Reach out at [email protected] or book a call at calendly.com/darintheminnesotan.
Darin Bjerknes | Minnesōtan, Brokered by REAL | [email protected]
