Bulk Sale Escrow Checklist

Our Bulk Sale Division consists of a team of Escrow Officer and their Assistants that all bring longevity, stability and unmatched knowledge in the field of Bulk Sales. Mission Valley Escrow is a member of the Business Brokers Association.

You will find that our Bulk Sale escrow fees are competitive with the market. Many of our existing customers feel that the service provided exceeds the fee basis, making our services well worth their investment.

Ready to open escrow? You may find the following list helpful in opening your escrow:

• Agree on the terms of your transaction (sales price, down payment, financing, initial deposit, etc.)
• Provide us with the names, addresses, telephone/fax numbers of all parties.
• Name, address, telephone number of the landlord.
• Is the buyer compensating the seller for any security deposits on the existing lease?
• Name of contact and telephone number of any new lenders.
• A list of any contingencies.
• An approximate value of the Inventory of Stock in Trade. Does the purchase price include the value of the inventory OR is the inventory to be paid in addition to the stated purchase price?
• A list of the fixtures and equipment being sold including any vehicles.
• A list of any equipment that is leased.
• Names and loan numbers for any existing loans.
• Seller’s State Board permit number, State and Federal Tax ID numbers, if any.
• Is the Seller incorporated, a partnership, or an LLC, etc? Has the seller used any other business names and addresses during the past three years?
• Is the buyer planning to incorporate, become an LLC, a partnership or a sole proprietorship?

Special Note Regarding Sales Tax

In most cases, the State Board of Equalization will charge sales tax on the value of the fixtures and equipment being sold to the Buyer. It is important that both the buyer and seller see either their certified public accountant or bookkeeper regarding a break-down or “allocation” of the purchase price.

How long does the escrow process take?

The average length of a Bulk Sale Escrow is approximately thirty days. The average length of a Bulk Sale Escrow that include a liquor license is approximately 45-60 days.