Definition of "Front-end money"

Pon  Winstead real estate agent

Written by

Pon Winsteadelite badge icon

Coldwell Banker

Amount of money that must be charged or invested in the initial stage of a business transaction to demonstrate good faith as well as to help offset some expenses. For example, the customary 10% deposit on the initiation of an agreement of sale is a form of front-end money required to initiate the contract.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Use of a parcel of land that will produce the greatest current value. ...

Style of life emphasizing outdoor activities, amenities, and recreation. Example are campers and barbecues. It is usually on a short-term basis. ...

The assessment sales ratio is a way of measuring the accuracy of a property’s assessed value when compared to the property’s selling price. This measurement gives the ...

Visible area that can be readily seen by outside traffic. This is particularly important for a commercial business. ...

Unsecured long-term debt. There is no collateral or lien on the property. A debenture can only be issued by a financially sound borrower with an excellent credit rating because no ...

An acre is defined as a land unit that is commonly used in the US customary and imperial systems of 66 by 660 feet (one chain by one furlong). An acre is a measure of volume used in many ...

Outside layer or covering for a structure. It may be a coating of material for protection against inclement weather. ...

Excess of money or fair value of property received on sale or exchange over the carrying value of the property. An example is the sale of a building when the cash received exceeda its ...

To depreciate is to lose value for something. Depreciation is the act of losing worth.Connecting with real estate, Property depreciation can be both an accounting method typically used to ...

Popular Real Estate Questions