Private Buyer

An individual or organization that is purchasing an asset and whose actions are not backed by a government or government agency. The private buyer is responsible for all costs associated with the transaction, and parties to the transaction can only pursue the private buyer for recourse in the case that there are problems with the transaction.

Transactions with a private buyer typically carry more risk than those involving a public buyer, which generally refers to a government-backed entity.

For example, a private buyer might be a company that is purchasing the mortgage of a property. Because the company is not backed by the government, it does not have the "full faith and credit" that a governmental organization would. If the company fails to make mortgage payments, the party that sold the mortgage will not have the recourse of seeking payment from the government.


Investment dictionary. . 2012.

Look at other dictionaries:

  • private mortgage insurance — n: insurance that a lender may require a borrower to purchase to cover losses in the event of default of a residential loan esp. when the borrower is giving the lender a mortgage on property in which the borrower has less than 20 percent equity… …   Law dictionary

  • Private landowner assistance programs — are available throughout the U.S. for landowners interested in maintaining, developing, improving and protecting wildlife on their property. Each state provides various programs that assist landowners in agriculture, forestry and conserving… …   Wikipedia

  • private sale — ➔ sale * * * private sale UK US noun [C or U] ► FINANCE a situation in which shares, bonds, etc. are sold to only a small group of investors, rather than on an open market: a private sale of sth »The company raised nearly $6 million through a… …   Financial and business terms

  • private treaty — n: a sale of property on terms determined between the buyer and the seller got better prices by private treaty than his neighbors did at auction Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • private treaty sale — The sale of a company or business where the seller and buyer agree the terms of sale between themselves. Related links auction sale Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • Private equity secondary market — In finance, the private equity secondary market (also often called private equity secondaries or secondaries) refers to the buying and selling of pre existing investor commitments to private equity and other alternative investment funds. Sellers… …   Wikipedia

  • Private equity — In finance, private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. There is a wide array of types and styles of private equity and the term private equity has… …   Wikipedia

  • Private company limited by shares — Companies law Company  …   Wikipedia

  • Private label —    Beginning in the mid 1980s, in an effort to improve margins, reduce prices, and achieve product differentiation, retailers began to assume the role of manufacturer or jobber by offering apparel under their own private label. The downsides for… …   Historical Dictionary of the Fashion Industry

  • Private electronic market — A private electronic market (PEM) utilises the internet to connect a limited number or pre qualified buyers or sellers in one market. PEMs are a hybrid between perfectly open markets (e.g. exchanges where there is no pre existing relationship… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.