Simple English definitions for legal terms
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Key money is a payment that a new tenant gives to a landlord in exchange for a key to the leased property. It can also refer to a payment made by a prospective tenant to a landlord or current tenant to increase the chance of obtaining a lease in an area where there is a housing shortage. The first type of key money is legal, while the second type is usually illegal and violates housing laws.
Definition: Key money is a payment made by a new tenant to a landlord in exchange for a key to the leased property. It can also refer to a payment made by a prospective tenant to a landlord or current tenant to increase the chance of obtaining a lease in an area where there is a housing shortage. The first type of key money is legal, while the second type is usually illegal and violates housing laws.
The examples illustrate the two different types of key money. The first example shows how key money can be a legitimate payment required by the landlord in exchange for access to the property. The second example shows how key money can be an illegal payment made by a tenant to a landlord or current tenant in order to secure a lease. This type of key money is often used in areas where there is a housing shortage and can be considered a form of bribery.