Good Faith Money
December 14, 2013 | | Kris Tabetando | 0 Comment
In website sales, good faith money, sometimes referred to as earnest money, is a nominal amount of money placed in escrow by a website buyer to indicate to the seller that she is serious about completing the transaction.
The amount of earnest money deposited depends on the financial value of the transaction. It could be a small nominal fixed sum or a percentage of the transaction value. At the closing, the good faith money goes to the website seller as part of the website purchase price payment.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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