Definition of "Front-end money"

Nicky Fedor real estate agent
Nicky Fedor, Real Estate Agent Berkshire Hathaway Fox & Roach

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.

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