We hope this Glossary of Mortgage and Real Estate Terms helps you understand the home buying and financing process. Should you have any further questions, please do not hesitate to contact your Loan Officer for answers.

Additional Terms: # A B C D E F G H I J K L M N O P Q R S T U V W XYZ

K Terms

Kickbacks:  Anything of value given for a referral.  Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or any thing of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.  Violations of Section 8's anti-kickback, referral fees and unearned fees provisions of RESPA are subject to criminal and civil penalties. In a criminal case a person who violates Section 8 may be fined up to $10,000 and imprisoned up to one year. In a private law suit a person who violates Section 8 may be liable to the person charged for the settlement service an amount equal to three times the amount of the charge paid for the service. 

 

Kick-Out Clause: A sales contract clause that allows a seller to accept a contingent offer and then back out to accept a second and better offer, without penalty.

 

Kitchenette: A tiny kitchen area that is often built into the end of another room, such as in an efficiency apartment.

 

Kit Home: A structure built from prefabricated parts, which is assembled by a contractor.