holdback provision

Definition

If a buyer has to pay a debt that the seller did not disclose, the amount paid is taken from what was held back in an escrow account at closing, as written into the purchase and sell agreement.

Use holdback provision in a sentence

There was a holdback provision and I was a bit angry at that and wanted things to go easier and everything.

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At closing, the buyer's debt was satisfied when the seller withdrew the amount due from an escrow account known as a holdback provision.

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HOLDBACK PROVISION If a buyer has to pay a debt that the seller did not disclose, the amount paid is taken from what was held back in an escrow account at closing, as written into the purchase and sell agreement.

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holdback holder