The world of real estate has its own vernacular that can confuse those who have not had experience buying or selling property. Often the phrasing of real estate transactions can be confusing as well, such as the term “short sale.” Someone who might not be aware of the phrase would understandably assume a short sale is a sale of a property on a shorter timeline, but in reality, it means you are selling your property short of the actual value. Bulk sales are another such phrase that might confuse someone not familiar. Read below to learn more about bulk sales and how Bay Area Escrow can help you with your bulk sales and ABC license transfer.
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What is a Bulk Sale?
Contrary to what its name might imply, bulk sales do not mean you are selling several properties in bulk. Instead, a bulk sale is a company selling business assets to a buyer. Bulk sales are also referred to as bulk transfers because one business entity transfers to another.
A bulk escrow, by definition, is an agreement to sell a stock, corporate assets, or a company. A bulk sale ensures that the seller does not have the opportunity to use the money from the sale for purposes other than taxes or debts owed. If a company is in financial trouble, it can reduce its problems by cutting back on its business and selling part of its inventory or assets.
How Do Bulk Sales Work?
The underwriting agent will channel funds to the appropriate parties and charge an escrow fee shared between the buyer and seller. Still, both parties can agree to the specified payment amount in writing. Any buyer will generally not be liable for the seller’s obligations unless the buyer agrees to accept those obligations.
The law specifies that the buyer becomes responsible for the purchase of a business. If the buyer does not ensure that the wholesale transaction follows the law, the buyer will be liable for the seller’s debts and obey the seller’s creditors. If the buyer is obliged to pay the seller’s debts when this was not part of the contract, they will reimburse the seller for the amount.
How Can Bay Area Escrow Help with my ABC Liquor License Transfer Through Bulk Sale?
During the past decade, Bay Area Escrow Services has provided real estate professionals and individuals with excellent proven and trusted assistance in transferring most businesses with or without liquor licenses as the settlement agent.
Following state guidelines, we will create an escrow before completing the filing with the Department of Alcoholic Beverages. Since the transfer of licenses combines with the sale of underlying assets, the escrow agent will notify the tax authorities, the owner, and any intermediary to facilitate the orderly closure. Along with all the necessary corrections and prorated charges, the escrow agent issues transaction reports to the parties and finally sends all required documentation to complete the escrow. As a settlement agent, we act on behalf of both parties to protect their interests under escrow instructions.
Contact Us Today
Bay Area Escrow can guide you through the ABC license bulk sale process each step of the way. If you have any questions or concerns about bulk sales, or if you’re ready to schedule our services, give us a call at (925) 831-9099!