Real Estate Glossary Terms Beginning With – K

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Updated: November 22, 2021

Terms Beginning With - K

Property Development & Investment Glossary, Terms & Definitions

Keogh Plan

A federal tax regulation that allows self-employed people to put money aside for retirement by allowing them to put pretax earnings into a trust account. The plan, also known as an HR-JO Plan, allows self-employed individuals (but not independent contractors) to deduct this cost as an ordinary business expense on their tax return and invest these Keogh funds in stocks, bonds, or mutual funds. All profits and gains from these investments are tax-free. After the age of 59.5 and upon retirement, the funds can be taken without penalty. Taxes are owed at this time, but the taxpayer is most likely in a reduced tax category, and if the money is divided over ten years, a special ten-year averaging mechanism decreases the tax even further. Withdrawals are not permitted after the age of 70.5.

Key lot

A lot with increased value due to its strategic placement, particularly when it is required for the greatest and best use of adjoining property; a lot that adjoins the rear property line of a corner lot and fronts on a secondary roadway. Also, the property that is required for the development of a project.

Key man insurance

If a key employee dies or becomes disabled, the insurance coverage will be used to pay the expected cost of replacing him or her in the organization. For small businesses that rely heavily on a single executive, some lenders need key employee insurance.

Key money

Secures a leasehold interest through the payment of a security deposit. In essence, the potential tenant is purchasing the possession of the building.

Key tenant

A big company that rents several floors in an office building or a big store in a shopping mall.

Kicker

In a contract, an additional fee of interest or rent is expected.

Kickers

A lender may request several sorts of equity participation as a condition for lending money, such as participation in rentals, profits, or extra interest. Serious legal problems are sometimes raised about whether such equity participations represent additional interest under usury laws.

Kiln

A vast oven-like chamber used to bake, dry, and harden materials including lumber, brick, and lime.

Kiosk

A tiny structure, normally made of wood, with one or more open sides and used as a newsstand, jewelry stall, or phone sales, particularly in an enclosed mall. Such a business often pays rent on a percentage leasing basis.

Kitchenette

Space utilized for food preparation and cooking that is less than 60 square feet in size.

Knockdown

Prepared building materials are sent to the building site without being put together, but they are complete and ready to be put together and installed.

Glossary Index

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