Although a liquor license cannot be tied to any property permanently it is still considered property in the state of California. The Alcoholic Beverage Control of California requires the transaction to be done through an escrow company. Escrow gives both the seller and buyer transparency in the transaction. Escrow outlines full obligations to be performed by the buyer and seller. It also protects the best interest of both parties; for the buyer it secures that their money is held until the license completely transfers with ABC and on the seller’s side it holds their funds in a third-party manner that does not have any interest in the transaction. When a license is close to transferring, ABC will request form 226 Statement Re Consideration Deposited in Escrow which escrow releases to ABC once the license is fully funded by the buyer.
Liquor license sales may be similar to home sale but not every escrow company is familiar with the process. There is only a hand full of escrow companies in California that are dedicated to liquor license transfers and business sales. To ensure the sale is going through a knowledgeable escrow company ask if they will prepare ABC 211A Sign Off, ABC 227 Recorded Notice, and ABC 226 Statement of Consideration in their escrow instructions. If the answer is no, they can still oversee the sale but the buyer will have to ensure these forms are prepared correctly for ABC one which is needed to be notarized by the seller and another has to be recorded at the County’s Recorders Office.
Liquor License Network recommends to use the following escrow companies to oversee your next liquor license purchase or sale. Please note we do not have any affiliation, interested, or ownership with these escrow companies. We personally use them when we handle client accounts and transfers because their experience and are knowledge of ABC escrow required paperwork, state escrow laws and regulations.
280 S Beverly Dr. ste 300
Beverly Hills, CA 90212
Frances Meron, Senior Escrow Officer email@example.com (310)860-6965
Gabby Garcia, Escrow Officer firstname.lastname@example.org (310)860-6082
1748 Main Street
Escalon, CA 95320
Diane Boudreau-Tschetter, Senior Escrow Officer email@example.com (209)838-1100