What is a Holdback? Holdback in Simple Words - Divestopedia A holdback is a portion of the purchase price that is not paid at the closing date This amount is usually held in a third party escrow account (usually the seller’s) to secure a future obligation, or until a certain condition is achieved Holdbacks are very common in purchase and sale agreements
What Is an Escrow Holdback? - SoFi A holdback is typically provided by the seller near the closing of the deal In this case, funds are held back (in escrow) to pay for a repair to the property that needs to be done within a certain period of time after the closing
What is Holdback? - finfloh. com In finance and business transactions, a holdback refers to a portion of funds withheld by one party to ensure the fulfillment of specific obligations or conditions by the other party
What is a Construction Holdback? In the construction industry, a holdback is a financial practice where a portion of the payment due to a contractor or subcontractor is withheld by the project owner or general contractor
Payment Terms: Holdbacks, Escrows and Earnouts A holdback is the retention of a portion of the purchase price until the occurrence of some event or the expiration of a period of time; an escrow is akin to a holdback, except that the retained amount is placed in escrow with a third-party agent
HOLDBACK Definition Meaning | Dictionary. com Holdback definition: the iron or strap on the shaft of a horse-drawn vehicle to which the breeching of the harness is attached, enabling the horse to hold back or to back the vehicle
What Is a Holdback: Understanding Its Key Roles and Benefits Holdbacks are essential components in purchase and sale agreements, offering a safety net for various transactions But what is a holdback? In essence, a holdback is a portion of the purchase price retained in a third-party escrow account until certain post-closing conditions are satisfied