Literally, khulu is Arabic for vacancy or emptiness (as in a vacant or empty place). Technically, khulu is usually associated with the word “badal” (Arabic for compensation). Badal al-khulu refers to the compensation paid to an owner of some property (real estate, land, etc) or to the current tenant for the right to let or lease that property. This right is known in Arabic as khulu or qufliyyah.

Khulu is also spelled khuluw.