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

Individual or entity that divides up a large piece of owned land into smaller pieces generally for the purpose of developing them into homes for sale in the future. ...

Legal action between a plaintiff and defendant. ...

Raised concrete border constructed along a street or a sidewalk. A curb prevents vehicle from going on the adjacent property and sidewalks as well as directing runoff into storm drains. ...

An agricultural technique of supplying water to land to sustain the growth of crops. Developing irrigation system is an ancient practice being used as early as 500 BC along the banks of ...

Net return on a real estate investment. It equals the income less the expenses associated with the property. ...

Person who dies leaving a will specifying the distribution of the estate. ...

Interest rate on a mortgage is changed periodically based on the change in a general price index to take into account inflation, such as a yearly adjustment. An example is the consumer ...

Sewer system built into the streets of a neighborhood that is capable of accommodating the excess water flow of a heavy storm without backing up or flooding. ...

In the mining and petroleum industries, it is a portion of the profit secured from the extracted minerals or oil reserves from the property paid to the property owner. For example, a ...

Popular Real Estate Questions