SELL BUSINESS AGREEMENT

The Agreement to Sell a Business is similar to a purchase and sale agreement that you might sign with a real estate agent. However, since it is designed specifically for the transfer of a business located in leased property, it is more concise, and omits sections unnecessary to your transaction.

If you, as a buyer or a seller, have been negotiating the transfer of a business, download this free form and learn what details must be covered.

The Agreement to Sell a Business starts with the names of the parties and the Business name and address of the business being sold.

It asks for the price and the terms of the sale, and reminds the parties that they need a list of all business fixtures, equipment, and inventory to be transferred. If the seller is accepting time payments, the form is a reminder to agree on down payment, interest rate, and monthly payment amount. It gives notice of a lien on the business fixtures, equipment, and inventory present at time of transfer AND any property acquired during the term of the note.

This agreement allows for the seller to clear any debt owed on business property with the proceeds of the purchase…and specifies that those funds will be held in escrow by a third party if the debt cannot be paid on the day of the sale.

The date of closing is given, along with procedures to follow when the transfer occurs between due days for rent, taxes, payroll, etc.

A provision for a Covenant Not to Compete is given, along with contingencies of the buyer being allowed to assume the existing lease and transfer the required governmental permits.

The Agreement to Sell a Business will give buyer and seller a complete picture of the transaction and point out any areas still requiring negotiation. It will make both sides aware of the additional documents required and the obligations each is assuming. When completed in its entirety, and when required documents are attached, this form will become the blueprint for the final sales contract.

SELL BUSINESS AGREEMENT