Global Definitions Database
Access, learn and discover all terms related to the non-listed real estate sector.
K
Key person clause
A provision intended to ensure that the identified management professionals making and managing the investments on behalf of the vehicle are the same individuals who the investors expect to manage the vehicle and / or the individuals responsible for the prior track record(s). Key person provisions often allow investors to suspend further investments in the vehicle if certain key personnel leave the manager or in case of other circumstances as defined in the vehicle documentation.
Kick-Out Clause/Provision
With reference to leasing: a right of a party to terminate an agreement, such as a tenant’s or landlord’s right to terminate a lease based on insufficient percentage rent, or a hotel owner’s right to terminate a management agreement based on poor performance; With reference to asset acquisition: a purchaser’s right to exclude certain properties or loans from a multi-property or multi-loan acquisition.
Know Your Customer (KYC)
Implemented in 2012 by FINRA Rule 2090 (Know Your Customer) and Rule 2111 (Suitability), regulations that require broker-dealers to know and keep essential facts of their customers.