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How can you go about leasing a liquor license in NJ as opposed

Resolved Question:

How can you go about leasing a liquor license in NJ as opposed to "buying" the liquor license or as opposed to having all rights in the liquor license transferred?
Submitted: 2 years ago.
Category: Business Law
Expert:  JBaxLaw replied 2 years ago.

BizAttorney :

Hello, I am a professional here to assist you. I appreciate your use of this service.

BizAttorney :

Before we get started I would like to provide a brief explanation of how this system works.

In essence, when we are done you will leave a rating for my answer.
I only receive credit for assisting you if you leave a positive rating. The rating only applies to my answer. In some situations I will supply accurate legal information to customers who feel that information is "bad news." I strive to provide accurate information and provide that information whether good or bad news. Please do not hold me accountable if the information provided was not what you were hoping to hear. We answer questions relying on an honor system with the hope that customers will do the right thing and provide a positive rating so that we are credited for our work.

Now we can address your question.

BizAttorney :

In New Jersey, the ABC Act control liquor licenses. The law does not allow for the sale or transfer of those licenses as property, yet it does occur.

BizAttorney :

The licenses are sold often when a property is leased or sold which will need a liquor license. These are not "leased" licenses. What you may find is that a contract may require that the original seller of the liquor license include a "first right of refusal" in there contract. This means that if the party who bought the license decides to sell they must first offer it to the party from whom they bought. This can also be tied to a lease such as if a party defaults on a commercial lease for a bar or restaurant, then they must sell the license to the landlord via the first right of refusal.

BizAttorney :

The key is having an attorney in New Jersey create a contract meeting your specific needs.

BizAttorney :

I hope that you will be so kind as to leave a positive rating. We only receive credit for assisting customers if we receive a positive rating. Those ratings, along with optional bonuses, allow us to continue to dedicate time to this service.

Please let me know if you have any problems with the rating system as there have been some reports of issues.The "live" session will end once you leave a rating, but you can still post follow-up questions in a non-live question and answer format.

Thank you


 


 

Expert:  JBaxLaw replied 2 years ago.
BizAttorney : Hello, I am a professional here to assist you. I appreciate your use of this service.
BizAttorney : Before we get started I would like to provide a brief explanation of how this system works.

In essence, when we are done you will leave a rating for my answer.
I only receive credit for assisting you if you leave a positive rating. The rating only applies to my answer. In some situations I will supply accurate legal information to customers who feel that information is "bad news." I strive to provide accurate information and provide that information whether good or bad news. Please do not hold me accountable if the information provided was not what you were hoping to hear. We answer questions relying on an honor system with the hope that customers will do the right thing and provide a positive rating so that we are credited for our work.

Now we can address your question.
BizAttorney : In New Jersey, the ABC Act control liquor licenses. The law does not allow for the sale or transfer of those licenses as property, yet it does occur.
BizAttorney : The licenses are sold often when a property is leased or sold which will need a liquor license. These are not "leased" licenses. What you may find is that a contract may require that the original seller of the liquor license include a "first right of refusal" in there contract. This means that if the party who bought the license decides to sell they must first offer it to the party from whom they bought. This can also be tied to a lease such as if a party defaults on a commercial lease for a bar or restaurant, then they must sell the license to the landlord via the first right of refusal.
BizAttorney : The key is having an attorney in New Jersey create a contract meeting your specific needs.
BizAttorney : I hope that you will be so kind as to leave a positive rating. We only receive credit for assisting customers if we receive a positive rating. Those ratings, along with optional bonuses, allow us to continue to dedicate time to this service.

Please let me know if you have any problems with the rating system as there have been some reports of issues.The "live" session will end once you leave a rating, but you can still post follow-up questions in a non-live question and answer format.

Thank you

Customer: replied 2 years ago.

My question was not addressed by your answer. My question is about leasing a liquor license, and doing it legally with ABC Board approval.


 


You said that: "The licenses are sold often when a property is leased or sold which will need a liquor license. These are not "leased" licenses."


 


I am not sure what you're saying. Are you saying that the law does not permit a licensee of a liquor license to apply to the local ABC Board for a "transfer" of the license in the form of a lease of the license? Does every "transfer" have to necessarily be a "sale" as opposed to a "lease"?


 


Conceptually, I see no reason why an ABC Board can't approve the lease of a liquor license. However, I might be missing something. So what I'm looking for is whether you know that leasing a liquor license is something that no ABC Board is legally authorized to do.

Expert:  JBaxLaw replied 2 years ago.
I appreciate your patience and the opportunity to clarify my response.
I am including your questions below and my response is below each.


"The licenses are sold often when a property is leased or sold which will need a liquor license. These are not "leased" licenses." I am not sure what you're saying. Are you saying that the law does not permit a licensee of a liquor license to apply to the local ABC Board for a "transfer" of the license in the form of a lease of the license? Does every "transfer" have to necessarily be a "sale" as opposed to a "lease"?

I am saying that the law does not allow for the lease. There are transfers. The ABC Board has a process and instructions for such a transfer. The language of the law is not clear on transfers, but the Board has established clear rules which indicate what can and can not be done with a transfer along with requirements to accomplish a transfer. The ABC Board must approve the transfer and will not do so with any contingencies. That means the transfer must be permanent as in a sale. A lease is temporary and contingent upon complying with the lease terms. As such, the ABC Board would not approve a lease transfer as it contains contingencies.


Conceptually, I see no reason why an ABC Board can't approve the lease of a liquor license. However, I might be missing something. So what I'm looking for is whether you know that leasing a liquor license is something that no ABC Board is legally authorized to do.

A lease transfer of a liquor license is not permitted. Transfers must be in the form of a sale such that it is a permanent transfer absent contingencies. Here is a guide on such transfers. See:

http://www.nj.gov/oag/abc/downloads/liquor_license_transfer_guide.pdf

The only option to accomplish such a goal would be to petition the ABC Board for a rule change and only after the rules were amended to allow for a lease could your goal be accomplished.

Please let me know if you need any other information.

I hope that you will be so kind as to leave a positive rating. We only receive credit for assisting customers if we receive a positive rating. Those ratings, along with optional bonuses, allow us to continue to dedicate time to this service.


Thank you again

JBaxLaw, Attorney
Category: Business Law
Satisfied Customers: 11319
Experience: Experienced in business formation and licensing issues
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Expert:  JBaxLaw replied 2 years ago.
Thank you so much for allowing me to assist you.

Please let me know if you need any other assistance. Thank you for leaving me a positive rating and ensuring that I receive credit for assisting you.

Thank you again

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