Legal Question in Business Law in California

selling my business without escrow

I own a dry cleaners business, paid cash for it last year, I only owe supplies $ 2000.00. can it be sold just by filling out a legal form??? keeping in mind that he will make mo. payments untill paid in full, assuming the buyer is agreeable, and what about the land lord ??

can he refuse the sale or ask for escrow? We are trying to save money and time I'am leaving state very soon.

Please advise

Joe


Asked on 10/30/08, 10:46 pm

2 Answers from Attorneys
Cathy Cowin Law Offices of Cathy Cowin

Re: selling my business without escrow

Sometimes you're just buying trouble with that "saved" money. I just took a new client that did what you're suggesting and it all seemed fine.... until. The business escrow isn't that expensive and it will ensure that things are handled correctly and you have peace of mind. That's good value.

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Answered on 11/01/08, 11:59 am
Terry A. Nelson Nelson & Lawless

Re: selling my business without escrow

"A form"? Nice try; not likely. Any business sale agreement has to cover both parties rights, responsibilities, representations, warranty's, payment obligations, debt obligations, lease assumptions, various releases, waivers, hold harmless, etc, etc. You either spend a little in legal fees now to cover the issues correctly, of spend a lot later when problems and litigation falls in your lap, like when the buyer quits paying and you're out of state, or when he sues you for false representations, etc. Feel free to contact me if you get serious about doing this correctly.

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Answered on 10/31/08, 1:25 pm


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