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socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 37972
Experience:  Attorney and Real Estate broker -- Retired (mostly)
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It's a business escrow selling not the business but a rental

Customer Question

It's a business escrow selling not the business but a rental agreement fixed assets and inventory transferred BOE account to different location. Buyer insisted on escrow and escrow keeps coming up with delays
JA: Where is the property located?
Customer: Spring valley Calif.
JA: Has any paperwork been filed?
Customer: Not sure, they have solicited BOE, franchise tax board why not sure not selling business buyers can't be held responsible and up to date with sales tax but franchise tax board state income tax wasn't filed in 2014 cause lost money are asking for $8000 but no lein at this time and have appointment complete a 2014 return
JA: Anything else you want the lawyer to know before I connect you?
Customer: Not sure
Submitted: 24 days ago.
Category: Real Estate Law
Expert:  socrateaser replied 24 days ago.

Hello,

I am a member of the State Bar of California, the Bar of the U.S. District Court for the Central District of California (San Luis Obispo, Santa Barbara, Ventura, Los Angeles, Orange, San Bernardino, Riverside Counties), and the California and National Associations of Realtors. Please permit me to assist.

I don't see that you've asked a specific question. However, if you are wondering why escrow is contacting the BOE, then it's because the escrow agent is probably trying to determine if there is any outstanding sales tax liability, or associated tax lien. If there is, then that is a liability that must be either paid off during escrow, or alternatively transferred to the new owner with the BOE's written consent.

There is another possibility: very few escrow companies handle business transfers or asset sales. Residential real estate is the bread and butter of the escrow industry. Consequently, unless you are using an escrow company that emphasizes business transfers or asset sales, then you may need to find a different escrow company and have the escrow transferred to a company that can better handle your business transfer.

That's pretty much the whole deal.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, I receive nothing for my efforts in your behalf.

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