Each state has its own methods to assist and protect the buyer/seller and broker when transferring the business between buyer and seller. Most are some type of trust officer like the Escrow Agent or Escrow Attorney but known by different names in different states. Our examples will use the name Escrow Agent or Escrow Attorney to describe this trust officer (if available) to assist the seller and buyer in transferring ownership of the business. Escrow Agents or Escrow Attorneys are specialists in the field of business transfers and perform their services at very competitive rates. Some buyers and sellers choose to have their own attorneys review the details of the transaction. We encourage you to consult your attorney if you feel more secure by doing so.

The Escrow Agent or Escrow Attorney

Is completely neutral. He represents neither the buyer nor the seller. He will not represent one party against the other and he does not represent the broker.

Creates all necessary closing documents. Performs a lien search on the business to make sure clear title can be conveyed.

Prorates and pays the rent, deposits, taxes and other expenses if requested.

Makes sure that secured creditors are satisfied. Files and records documents with appropriate authorities