TRANSFERRING OWNERSHIP OF A BUSINESS

 When you go to the closing the ownership of the business is actually transferred to the buyer. Each state has its own methods to assist and protect the buyer,  seller and broker when transferring the business between buyer and seller.  You can use your own attorney and pay him yourself or you can use some type of  trust officer like the Escrow Agent and split the price with the buyer.  This trust officer is known by different names in different states.  For this purpose we will use the name Escrow Agent to describe this trust officer.  Escrow Agents are specialists in the field of business transfers and perform their  services at competitive rates. Some buyers and sellers choose to have their own  attorneys review the details of the transaction. We encourage you to consult your  attorney if you feel more secure by doing so.

ABOUT THE ESCROW AGENT:

  • Represents neither the buyer, the seller, nor the  broker. The Escrow Agent is completely neutral.
     
  • Prepares all necessary closing documents according to  directions given by the parties.
     
  • Performs or orders a lien search on the business to  make sure a clear title can be conveyed.
     
  • Prorates and pays the rent, deposits, taxes and other  expenses if requested.
     
  • Makes sure that secured creditors are  satisfied.
     
  • Takes care of filing and recording documents with the  appropriate authorities.
     

Considering selling - The Process - Questions & Answers - Do's and Don't's - What buyers look for
Seller's checklist - The meeting 

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