Frequently Asked Questions (FAQ)
What is the average time to close a business Escrow?
Without a liquor license, the bulk sale notice has to be published and recorded one time, 12 business days prior to close. It takes an average of three days to get into the paper. Therefore, you must allow a minimum of 15 working days after the opening instructions have been signed and returned to our office. The average close for a business only escrow is 30 days. With a liquor license, the premises must be posted for 30 days, and the average close is between 45 and 60 days..
Why do you need tax certificates?
Under California law, the buyer can have successor liability for the seller’s unpaid Tax liabilities unless a Certificate of Release is issued. Releases are obtained from California Department of Tax and Fee Administration(CDTFA), Employment Development Department (EDD), State Franchise Tax Board (FTB), and the County Tax Collector.
What is a Liquor License?
Liquor Licenses include beer and wire, distilled spirits, hard alcohol, wine growing/ tasting room, and brewing.
What items do I need to provide to close escrow?
Information required from the buyer and/or seller includes:
• The Allocation of Purchase Price (I.E., How Much of the Purchase Price Is for the Furniture, Fixtures & Equipment, Goodwill, Leasehold Improvements, Liquor License, & Covenant Not to Compete) • The Fixtures & Equipment List• Inventory Amount• Assignment of Lease with Consent If Landlord• Franchise Approval If Applicable
• The Allocation of Purchase Price (I.E., How Much of the Purchase Price Is for the Furniture, Fixtures & Equipment, Goodwill, Leasehold Improvements, Liquor License, & Covenant Not to Compete) • The Fixtures & Equipment List• Inventory Amount• Assignment of Lease with Consent If Landlord• Franchise Approval If Applicable
How long does a creditor have to file a claim?
For a business without a liquor license, creditors have up to the last day as listed in the notice to creditors. There is a cut-off time. For a business with a liquor license, creditors have up to the time the license is transferred to submit claims.