- Agency
- The California Department of Alcoholic Beverage Control, known as ABC, through its district office
- Form or filing
- A person to person transfer application, a seller sign off, a notice of intended transfer, a premises diagram and, in many sales, a temporary permit
- Timing
- A person to person transfer can average roughly seventy five days, so file early and plan the closing around ABC approval
Common snag: Closing before the transfer is approved. The seller must not pass money until ABC says yes, and an escrow with a neutral party is expected when there is a price.
Person to Person Transfers
When a bar or restaurant is sold, the buyer applies to ABC for a person to person transfer of the existing license. ABC reviews the buyer, the premises and the terms of the deal before approving.
Forms and Signatures
The package usually includes an application, a seller sign off that must be notarized or witnessed by ABC staff, a notice of intended transfer and a premises diagram. Details vary by license type, so check the current list with the district office.
Escrow Is Expected
If there is a purchase price, ABC expects an escrow with a party who is not involved in the deal, set up before the application is filed. The escrow pays out only after ABC approves the transfer.
Temporary Permits
A temporary permit can let the buyer operate while the transfer is reviewed, usually for up to about one hundred twenty days.
The premises must have been operating under a license within about thirty days of the application, and the seller must authorize it.
Plan for Time
Transfers can average around two and a half months. Start the application as soon as you have a signed deal, and line up the lease, bulk sale notice and sales tax clearance at the same time.
What ABC Checks
ABC looks at the buyer's background, the source of the money, the premises and whether local rules allow the use.
Buyers should expect fingerprinting and financial questions. A buyer with a loan or investors may need more paperwork than one paying cash.
Seller Duties After Closing
After the license moves, the seller should confirm that their own records and any local permits are closed. Keep copies of every ABC form, the escrow statement and the closing settlement in case a question comes up later.
Related Steps
See the bulk sale notice, CDTFA clearance and restaurant sale page.
Do Not Skip the Lease
ABC wants proof the buyer controls the premises, so a signed lease or assignment is part of the file. If the landlord is slow, the license transfer slows too. Start the landlord conversation first.
Questions to Ask Before Closing
Ask the ABC district office for the current list of forms for your license type, whether a temporary permit is available and what the escrow must say. Ask your attorney about the lease and any liquor liability insurance the landlord requires.
Do not hand over the license or the keys early.
Before You Close
This is general information, not tax or legal advice. ABC forms and fees change, so confirm them with ABC and your attorney. Then request a valuation call.