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What's the key money and when do we hear about it in real estate market?

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Question added by Asim Azaldeen Abdalrahman Mhammed , Property Manager , TAAM PROPERTY
Date Posted: 2016/03/07
Joe Weberhofer
by Joe Weberhofer , Operations and Marketing Manager , Action Real Estate Co. K.S.C.C.

Key Money is normally charged by a tenant, who is willing to transfer his/her lease to a new tenant (upon landlord's approval).

The justification for a tenant to charge Key Money can be based on 1) The good fame/reputation of the store. 2) The footfall the store generates. 3) Preferential Location. 4) Good commercial exposure. 5) Decorative items/fixtures that will be left behind by the vacating tenant.

Some landlords in Kuwait charge Key Money to new tenants when there is a strong appetite in the market for that particular location and the unit is over-subscribed.

Md Fazlur Rahman
by Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

In real estate business, Key Money is “down payment” or “Security despot”. By depositing  an agreed down payment or security money, the buyer expresses his/her firm intention to buy the property.

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

wait more details from expert

Rami Assaf
by Rami Assaf , loading and Storage Operations Supervisor , Arab Potash Company

Thanksfor invitation

 

I am apologies to answer this question because it's not my specialist field

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

i fully agree with the answers been added by EXPERTS..................Thanks.

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