At a Glance

• California liquor-license specialists. Focused on transactions involving California alcoholic beverage licenses.
• Neutral escrow administration. Funds, documents and closing instructions are handled impartially.
• License-only and business-transfer experience. Scope matched to the actual transaction.
• Long-tenured, experienced staff. Institutional knowledge paired with contemporary systems and communication.
• Start with a short conversation. The right intake and next steps without a long generic questionnaire.

What is liquor license escrow?

Liquor license escrow is the neutral handling of purchase consideration and transaction instructions when a California alcoholic beverage license or licensed business is being transferred. California ABC states that when there is purchase price or other consideration in connection with the transfer of a business operated under a retail license, an escrow must be established before the transfer is filed with the Department. The full purchase price or consideration must be placed in escrow, and payment is made only after ABC approves the transfer.

Because each transaction is structured differently, the best first step is not a long generic questionnaire. An experienced escrow officer should first understand what is being transferred, who the parties are, the type of consideration involved and whether the transaction includes business assets in addition to the license.

Liquor license escrow guides

How the process generally fits together

1. Initial conversation. The parties or their representative describe the proposed transfer.
2. Escrow structure. The escrow officer identifies the information and documents needed for the transaction.
3. Escrow is opened when required. California ABC requires escrow before filing when purchase price or consideration is involved in a covered retail transfer.
4. ABC transfer filing and notices. The applicant follows the filing requirements applicable to the specific transfer, which can include a recorded Notice of Intended Transfer.
5. Clearances and conditions. Escrow coordinates the transaction instructions and applicable closing items.
6. Closing and distribution. Funds are distributed according to the escrow instructions after applicable conditions, including ABC approval, have been satisfied.

Frequently asked questions

Does every California liquor license transfer require escrow?

No. California ABC states that escrow is required when purchase price or consideration is involved in the covered transfer. ABC’s Form 227 instructions also state that if no consideration is involved, escrow is not required. Other statutory exceptions can apply.

What counts as consideration?

California ABC describes consideration broadly. It can include cash, checks, promissory notes and other items of value connected with the license, inventory, fixtures, leasehold interest, real property, goodwill, a covenant not to compete or other property connected with the licensed business.

Can I get a quote without completing a long form?

Yes. ABC Escrow’s preferred approach is to begin with an initial conversation. Once the escrow officer understands the deal, the officer can request the transaction-specific information needed to determine whether the engagement can be accepted and provide a fee quote.