Legal Question in Business Law in California

Re: selling a business

A lawyer can handle an escrow incident to representation of one of the parties.

You also need for the buyer to waive the bulk sale transfer notice requirements, as that will take at least 30 days. Have you cleared this sale with the landlord? That may require more than a week's notice.

Has the buyer done the due diligence? The disadvantages of doing a seller carry back is that if the buyer feels that there was any misrepresentation in connection with the sale, the buyer could try to hold back payments on the note.

Re: selling a business

Yes you can use a lawyer for escrow, but your attorney should draft very clear and specific escrow instructions to avoid any problems. You should also have a lawyer draft the buy/sell agreement to make sure you do not get sued after sale, or have the buyer decide it was not what he expected, and withhold paying you the other 90%. A lawyer cannot guarantee that you will avoid such bad outcomes, but can help you greatly reduce the risk. You are wise to look for a lawyer, as many people try to save the money and then come to us after the problems arise.

Let me know if you would like assistance.

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