Transferring ownership

When buyer and seller go to the closing, the ownership of the business is actually transferred to the buyer.

Each state has its own methods to assist and protect the buyer, the seller and the broker when transferring the business between buyer and seller.

The buyer or the seller can use their own attorneys and pay the attorneys directly; or both buyer and seller may use a closing agent or a trust officer like the Escrow Attorney and split the cost of such attorney.

The escrow or closing attorney must be an experienced attorney in business acquisitions and related transactions. Your broker is most likely already working with an experienced attorney and will make sure that all the information and documents are provided to the attorney during the course of buyer-seller negotiations, in such a way that the attorney will have ample time to verify and check all the items needed for a successful closing.

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.

Question:
Why do I need a closing attorney?

Answer :
Closing attorney's and escrow agents act as a disinterested third party to a business acquisition or transaction. They are responsible for coordinating the payoff of any current lien holders on property, obtaining title and property information, and signing of loan documents and other documents pertinent to the transaction.
 

Escrow agents acknowledge their fiduciary obligations to the escrow beneficiaries to safeguard the escrow deposit in a special bank account, and to provide to them a complete accounting of all financial transactions relating to that escrow deposit.