Closing your Business Escrow and your State Board of Equalization Release

3/19/15 - Often closing the escrow on the sale of a Business, with or without a liquor license, can be a lot of work for the Seller due to requirements to close out accounts with governmental agencies. For instance, State Board of Equalization, has a process which is quite involved and requires a minor audit at a minimum and on occasion, a full audit once the Seller has had his last day of business.

As an escrow holder we work to accommodate the parties and to assist them in moving the process along by submitting, upon opening the escrow, a written Request for Certificate of Payment to the State Board of Equalization, with the intention of beginning the 60 day period as State law allows (though in the event the State Board of Equalization selects the business for Audit, the 60 day period will be adjusted and no longer from date of receipt of the Request for Certificate of Payment).

Once the Seller has had his last day of business, the State Board of Equalization will require the following (at a minimum);
1) Return of the Sellers Permit as issued by State Board of Equalization;
2) Closing Tax Return;
3) Copies of Sales Tax returns for the last two quarters;
4) Proof of Payment for the last two quarters;
5) Copy of Fully Executed Escrow Instructions;
6) Fully Executed Itemized List of Furnishings, Fixtures and Equipment;
7) Cashiers Check for the payment of all Sales Taxes due, per the Closing Tax Return;

Just know that the more you are prepared the less aggravation and frustration you will experience in obtaining the Releases required to close escrow and to achieve the ultimate goal, the receipt of your money from escrow.

TIP: A personal appearance to State Board of Equalization is preferable to submit all documents and funds to expedite the processing and issuance of the Certificate of Payment. Best to bring a cashiers check for payment and avoid electronic payments at this time to avoid delays and additional time State Board may require to verify payment has been received and applied to the account.

ADDITIONAL TIP: Bring and leave in the car a box filled with several years of books, records, bank statements, Sales Tax Returns, State and Federal Income Tax Returns etc. when you make your personal appearance to the office of State Board of Equalization. More often than not they will request documents you may not have expected, taking these documents with you in the car will avoid a trip back home and back to their office, which will be a timesaver.

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Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

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Brochure - Your Escrow and You

7/9/14 - Here is a very informative paper as originally released by the Escrow Institute of California many years back and which continues to be relevant today.

http://www.sepulvedaescrow.net/pdfs/Your%20Escrow%20And%20You%20(PDF).pdf

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Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

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Opening Escrow

6/28/14 - It is very important to only open escrow AFTER all terms of the transaction have been agreed upon by Seller and Buyer.

Whether working with a Real Estate Agent or the Sale is negotiated directly with the Owner, often referred to as a For Sale by Owner (FSBO), it is very important to discuss and agree upon all terms before opening escrow, specifically so Seller and Buyer will not have to negotiate on additional matters after they have signed escrow instructions.

It is important to understand that escrow instructions are a legal binding agreement which can only be changed or amended if the Seller and Buyer both agree on the exact changes. Avoiding disagreements is very important. Doing so will help close your deal as planned, so everyone wins!

Obviously there are times further negotiation cannot be avoided, due to perhaps something unexpected, though once again always best to make every effort to anticipate as much as possible ahead of time and use the Agreement to fall back on.

TIP. Before signing a Purchase Contract, Agreement or Escrow Instructions go over the documents with your Real Estate Agent, Lawyer or Escrow Officer. While your Escrow Officer cannot give you legal advice, they very well may notice a problem in your Agreement which they can bring to your attention and give you the chance to talk about it with the other party before you sign Agreements to open escrow and obligate yourself to the legal and financial commitment called for.

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Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

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What is Escrow?

6/21/14 - An Escrow can be used for many different reasons.

An Escrow holder, sometimes referred to as a Settlement or Closing Agent, depending on what part of the country you are in, holds Written Agreements, Documents and Monies, which are only released when all terms of the Written Agreement have been complied with.

Agreements and Instructions in Escrow must be mutually agreed upon by all parties (Seller and Buyer), otherwise an Escrow Holder simply continues to hold documents and funds until mutually signed Agreements are received.

TIP: It is always best to have all agreements documented from the very beginning rather than change the agreements during the escrow. It is possible that later the Seller and Buyer may not agree on the matter which can create problems with moving forward to close the deal. This should be avoided at all costs!

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Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.
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