1. Determine the type of transfer

A person-to-person transfer changes the owner of an existing license. Other transactions can also involve premises-to-premises moves, ownership changes within an entity, double transfers or fiduciary transfers. The applicable ABC forms and supporting documents differ by transaction type.

2. Establish escrow when purchase price or consideration is involved

California ABC states that if purchase price or consideration is involved in the covered retail transfer, escrow must be established before filing. The full purchase price or consideration must be placed in escrow, and payment is conditioned on ABC approval of the transfer.

3. Describe the entire consideration accurately

ABC requires the transfer application to describe the entire consideration. Form ABC-227 instructions explain that the amount can include the business, license, inventory and other tangible or intangible property, and the form asks how the consideration is being paid.

4. Record the Notice of Intended Transfer when required

For the retail license categories identified by ABC, the applicant presents a Notice of Intended Transfer to the County Recorder. ABC’s instructions explain that the notice is intended to permit creditors to take steps to protect their interests and that defects or changes in consideration can delay processing.

5. Complete escrow conditions and closing

The escrow officer administers the written escrow instructions and coordinates the transaction-specific closing items. Because each deal can involve different assets, liabilities, financing, tax issues and creditor considerations, the final closing checklist should be based on the actual transaction rather than a generic website list.

Related: Do I need escrow? · How long does liquor license escrow take? · Escrow costs and fees