Ok...so I have ppurchased a few sites in teh past. Im wondering how situations where a seller has for example...a hosting company who have customers who have paid yearly... And the buyer buys the hosting company in the middle of a clients plan. IT IS the buyers right to be given the funds that equal the rest of the hosting clients plan....correct? Also....the same sort of situation with paid advertising. Say I buy a forum where there have been paid ads.....which have already been paid up for a year. Is it my responsiblity to keep those ads on? I would say yes....but not without payment from the seller which equals the rest of the advertisers months. What are your thoughts on this? I really got burned w/the hosting company for this very reason, so Im like...this cant be fair. Its like Im hosting for free....or having ads up for free while some other guy ran off w/all the money.
Well, I believe the typical norm is that you factor in the cost of the annual payment clients and add it back to what you paid for the hosting business. It is not a normal trend for the web host to pay you the difference of the prepayments which has not been incurred.
When you buy a site, you assume the obligations of the previous owner. You should ask those questions before you buy a site - but usually that is already factored into the asking price. You would need to supply the hosting and keep the ads up even if the seller didn't give you a credit.
There are no buyer's "rights" in that situation. It's all about what you negotiate in the deal. As mjewel said, you're the new owner and the responsibilities are yours. "Fair" has no business being in any adult's vocabulary, especially one that's operating in the business word.
Yeah, you have to make it clear that you want to know of any burdens that may rest on the business. Then atleast you are covered so as to them withholding any information from you that would change your situation if you discovered after the deal that they made misrepresentations.