Closing Escrow on Business Buying/Selling

The final part of the whole deal is the escrow.'on or after' the specified date. In real estate, the
The word is an old Anglo-French word whichterm used is 'on or before'.b) When the seller is
originally meant 'piece of parchment or fabric'. Inpaying all or a part of the escrow fee, a deposit
today's parlance, the word describes the processfrom the seller is required as well as the buyer's
whereby a property is deposited with a thirddeposit. Usually the costs are split, but it is
party to be transferred to the grantee (buyer),whatever the parties agree to.c) If the sale in any
when certain conditions are met.way includes a liquor license, then all the money,
including what is being paid for the liquor inventory
There is a lot of paperwork involved in buying andmust go through escrow. Also, no funds can be
selling a business. It can be a daunting task, justreleased before the escrow is closed.d) Finally,
from the paperwork alone. It can also be veryInstructions must be written and signed by all
stressful. An escrow officer specializes in handlingparties along with all initial deposits before the
these things and ensures that the buyer getsnotice of sale can be published. When the notice
everything he or she is buying, with no hiddenof sale has been published and recorded, there is
debts on the business and that the seller getsa 12-day minimum period, which does not include
their money.holidays and weekends, in which, any creditors of
The things to know about escrow proceduresthe seller can file claims with the escrow
with regard to a business is that it differs from acompany. If the business being sold includes the
real estate escrow in the following areas:a) Datetransfer of a liquor license, then the time is
specified in escrow instructions for a business isextended.