Bulk Sale Escrow Process

AND/OR LIQUOR LICENSE (ABC) TRANSFER

NEEDED TO OPEN ESCROW AND PREPARE ESCROW INSTRUCTION PACKAGES:

  • Fully & Mutually Executed Purchase and Sale Agreement
  •  Bulk Sale Information Sheets with All Required Documentation Stated Therein
  •  Buyer’s Initial Deposit

NEEDED TO PROCEED WITH PUBLICATION/RECORDING:

  • Fully Executed Escrow Instructions
  • Original Notice to Creditors of Bulk Sale
  • Original Notice of Intended Transfer (ABC-227)
  • Clearance of Buyer’s Initial Deposit (if not wired)

ESCROW HOLDER WILL:

  • Publish/Record Notice to Creditors
  • Publish/Record Notice of Intended Transfer (ABC 227)
  • Order UCC Search
  • Forward 211-SIG, 211-A, Recorded 227 & Fully Executed Escrow Instructions to ABC
  • Order EDD, FTB and BOE Release of Buyer
  • Prepare Note, Security Agreement and UCC-1 for Seller Financing
  • Verify Status of Unsecured Property Tax
  • Process any Claims Received
  • Prepare Estimated Closing Statements

SELLER TO PROVIDE TO ESCROW PRIOR TO CLOSING:

  • List of Furniture, Fixtures and Equipment
  • Buy-Out Statements for Existing Liens Being Paid Through Escrow
  • UCC-3 Termination Statements to Clear Previously Paid Liens
  • UCC-3 Change/Amendment Statements for Liens Being Assumed by Buyer
  • Approval or Denial of Claims
  • Approved Estimated Closing Statement

BUYER TO PROVIDE TO ESCROW PRIOR TO CLOSING:

  • Approval of Bill of Sale and FF&E list
  • Copy of Fully Executed Assignment of Lease or New Lease
  • Completed ABC 226 Form
  • Approved Estimated Closing Statement
  • Wire Transfer of Closing Funds

ESCROW TO HANDLE PRIOR TO CLOSING:

  • Deliver Escrow Signed 226 Form to ABC

CLOSE OF ESCROW:

  • All Conditions are Satisfied
  • Wire Transfer of Lender’s Loan Funds Received
  • Wire Transfer of Buyer’s Closing Funds Received
  • Transfer of ABC License to Buyer

This represents a general overview of the Bulk Sale escrow process. Please note that each business sale is unique.

Ticor Title Company of California

Darleen C. Sweet | Commercial Escrow Officer

714-289-3344 • dsweet@ticortitle.com

Arwen Estelle | Commercial Escrow Officer

714-289-3347 • aestelle@ticortitle.com