Business sales include the sale and purchase of a business which may include or not include a liquor license transfer. These escrows are handled with real estate brokers or can be for sale by the owner with escrow being the neutral third party who ensures conditions are met.

Escrow is responsible for ensuring the business is free and clear of any liens or encumbrances once it transfers to the buyer’s possession. A search for the business is done as well as recording a notice to notify creditors that there is a business sale and to submit their claims to ensure they are paid prior to the transfer.

The unique aspect about these transactions is that no title is involved in these types of transactions as businesses are considered personal property rather than real property. The purchase price for these types of transactions is broken down and allocated towards various aspects of the purchase, like the goodwill of the business, furniture, fixtures, and equipment, inventory, etc.