Key money

Contractually agreed final payment by the buyer of a property when the keys are handed over. – A fee payment required from a new tenant of a house or flat before he moves in. – In some places, a customary gift from the buyer of a property to the seller’s wife or daughter. – A down payment to a business owner in a prime shopping location when the owner retires and leaves the retail space to someone else; i.e., the purchase price for a business lease. Key money in this sense has led to the fact that only prestige stores (flagship stores) are now to be found in certain streets, such as Bahnhofstrasse in Zurich or Königsallee in Düsseldorf. Lease assignment agreements with the condition of payment of a key money repeatedly occupied the courts.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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