BuLk Sale Checklist

Checklist of Tasks for Buyer

The following is a suggested list of issues to address for the escrow buyer. This checklist is for informational purposes only, and may or may not be complete. Escrow instructions will take priority over this list.

  • At the time possession date has been established, contact utility companies to transfer utilities from Seller’s Name to Buyer’s Name. Contact the telephone company for a “Request for supersedure” which allows the buyer to retain the same phone number. Seller and buyer both must sign.
  • Contact the State Board of Equalization to ascertain amount of deposit needed for sales tax account.
  • Obtain an application from the Department of Benefits payment for registration number to pay unemployment insurance, State Disability Insurance and State Income Tax withholding, if applicable.
  • Contact the Fire Department and Health Department in order to obtain permits for subject premises.
  • Obtain a city business license.
  • Contact lenders about necessary financing if needed, and get a tentative commitment.
  • Prepare and submit financial statement to the landlord for a new lease or lease assignment, if required by the landlord.
  • File Fictitious Business Name Statement to open business account with the bank. Filing may be done by escrow.
  • If a liquor license in involved, make application to the Department of Alcoholic Beverage Control for transfer of liquor license. The ABC will require a certified copy of the Recorded Notice to Creditors of Bulk Sale and the Intention to Transfer liquor license AND a certified copy of the Escrow Instructions.
  • Open Escrow – sign escrow instructions and preliminary documents for filing/publication.
  • Obtain the name, address, telephone number, and corresponding account number of the landlord and other relevant parties.
  • Record inventory of all furniture, fixtures and equipment at the premises being conveyed in the sale, including any vehicles. Identify any equipment that is leased, and any outstanding loans.
  • Agree on the terms of the transaction – sales price, down payment, financing, initial deposit, etc.

Checklist of Tasks for Seller

The following is a suggested list of issues to address for the escrow buyer. This checklist is for informational purposes only, and may or may not be complete. Escrow instructions will take priority over this list.

  • Contact the telephone company for a “Request for Supersedure” which allows the buyer to retain the same phone number. Seller and buyer both must sign.
  • If you are a corporation, obtain corporate resolution authorizing the sale of the corporate assets and designate authorized signature(s).
  • Provide to the buyer copy of any equipment lease contracts, name and address of insurance carriers.
  • Contact the California State Board of Equalization regarding the close out of escrow on the location being sold and obtain escrow tax release, prior to closing out escrow. This release will show: proof of having paid sales tax on fixtures and equipment conveyed in the sale; proof of paid sales tax on goods sold upto date of possession.
  • If a liquor license in involved, make application to the Department of Alcoholic Beverage Control for transfer of liquor license. The ABC will require a certified copy of the Recorded Notice to Creditors of Bulk Sale and the Intention to Transfer liquor license AND a certified copy of the Escrow Instructions.
  • Open Escrow – sign escrow instructions and preliminary documents for filing/publication.
  • Obtain the name, address, telephone number, and corresponding account number of the landlord and other relevant parties.
  • Record inventory of all furniture, fixtures and equipment at the premises being conveyed in the sale, including any vehicles. Identify any equipment that is leased, and any outstanding loans. Approve the list and submit when opening escrow.
  • Agree on the terms of the transaction – sales price, down payment, financing, initial deposit, etc.

Bulk Sale Escrow process

Bulk Sale Transactions