ABC Approves request
ABC approves the transaction and returns form 226 to Escrow for certification that Escrow is ready to close. When escrow is ready to close, an Escrow Officer signs the certification and returns it to the ABC. The license is then transferred to the purchaser and form 226 is again returned to escrow completed. Escrow is now closed.
ABC Reviews request
ABC processes the request per state requlations.
Buyer and Seller Agree in principal
The parties determine the terms of the purchase.
Buyer applies at ABC
The Buyer visits an ABC office to begin the transfer process. A Form 226 is generated and mailed to escrow.
Buyer obtains City permits and lease
Outside of Escrow, the Buyer may need to obtain business permits, building leases, zoning approval or other licenses.
Buyer Provides final deposit
Buyer provides clear funds sufficient to cover the purchase as agreed.
Buyer Takes Possesion
Buyer takes possesion of the business, if necessary using a temporary ABC permit.
Close Escrow pending BOE
Upon receipt of the Completed form 226 from the ABC, the liquor license is transferred to the purchaser and the escrow is considered "Closed".
The ABC form used to authorize the final transfer of the Liquor License.
Both parties meet with the Escrow Officer to specify in detail the terms of the purchase and to complete the Notice to Creditors.
Order UCC Search
A 3rd party search company searches for leins against the business and the owners at the county and state level.
Pay valid demands
All accepted demands filed during the escrow are paid.
Prepare Escrow Instructions
The Escrow Officer creates Escrow instructions specifying the details of the transaction.
Provide Initial deposit
An initial deposit sufficient to cover expenses of the escrow, and any agreed upon deposit required by the seller.
Publish Notice to Creditors
A 3rd party Newspaper in the businesses Judicial District publishes the Notice to Creditors for 12 days.
Receive BOE Clearance
Within 30 days of the filing of the final operating statement to the board of Equalization, they will issue a demand or release. To ensure the buyer has no liability the Seller Proceeds can not be released prior to receiving clearance from the BOE.
Receive Creditor Demands
Creditors return their requirements to remove any liens against the business.
Receive Govt Clearances
Each agency return their requirements to remove any liens against the business.
Receive Signed Escrow Instructions
Both parties sign and return a copy of the escrow instructions.
Request BOE Clearance
Request a final demand From the State Board of Equalization. They normally can not provide this until after the seller has ceased operation and filed their final return.
Request Govt Clearances
Request final demands from the Employment Development Department, the Franchise Tax Board and the County Tax Collector.
Request Payoff Demands
Request a final demand for any liens identified by the UCC Search or submitted in response to the Notice to Creditors.
Review File for completion
Verify that demands have been received from all agencies and lein holders (except for BOE). All necessary documents have been signed and returned. And sufficient money is on hand to complete the transaction, pay all liens and escrow expenses. Once all conditions are satisfied, sign form 226 and return it to the ABC.
Seller Files final taxes
Seller ceases operation and files a final statement and payment with Board of Equalization.
Seller Initiates transfer at ABC
The Seller visits an ABC office to authorize a transfer to begin.
Seller Receives Proceeds
After paying the Board of Equalization demand, remaining funds are released to the Seller.