Using Business Sale Escrow Companies
Business Sale Escrow Companies are used to protect the financial interest of people when buying or selling a business. An escrow account is where a trusted third party holds funds until all the requirements of both buyer and seller are satisfied. Bizproiftpro can act as an escrow agent or you can use www.escrow.com to protect both the buyer and seller during the due diligence process. If all conditions are not met the funds in escrow are returned to the buyer.
How do Escrow Services Work?
1. Buyer and Seller agree to terms – Buyer begins a transaction by making an offer and depositing earnest money into escrow.
2. Buyer puts money in escrow – The Buyer submits an earnest deposit to escrow.com. The Seller is notified that funds have been secured ‘In Escrow.
3. Seller allows the buyer to begin due diligence – The buyer begins due diligence upon receipt of a “refundable earnest deposit.”
4. Buyer completes due diligence – The Buyer has the option to accept or reject the purchase based on findings.
5. Escrow.com pays the Seller – Escrow.com releases funds to the Seller from the escrow account if the buyer is satisfied with their findings from the due diligence phase. The balance of any funds due is made by wire transfer to the seller. A transaction is completed – safely and securely!
The may agreement include but not limited to:
• Execution of Bill of Sale by Seller and Buyer
• Execution of a Promissory Note by the buyer is seller financing is involved
• Transfer of all assets described in Bill of Sale
• Communication of all account IDs, passwords, phone numbers, intellectual properties, website, social media accounts, and related properties associated with the normal operation of the business being transferred.
The buyer may terminate the Purchase and Sale for any reason in the due diligence phase at their sole discretion. The Earnest deposit will be returned to the buyer on demand. The escrow fee is to be paid by the buyer and costs $250.00 on average for the transfer of a business but may vary. Use the fee calculator to determine the exact cost at www.escrow.com/fee-calculator. Contact us if you have any questions about buying or selling a business using escrow services. Call us at 800-905-1213 or click below to schedule a call.
800-905-1213
