Why Using A Business Escrow and Settlement Services Agent Might Be Right for You

If you’re looking to purchase a new business, using a Settlement Services Agent might be an alternative to consider.  When a business transaction is not anticipated to be adversarial, both parties can use a neutral third-party escrow agent to assist in closing the deal. Tracy Jong Law Firm offers end-to-end business escrow, settlement and closing support services.  Our virtual platform for closing services are especially convenient for parties located in different cities, states and countries.  This service offers an affordable and expedited alternative to the traditional approach for both sides or also for attorneys looking to outsource the drafting of legal documents and closing services.  

What’s Included in a Settlement Service?

Escrow, closing or settlement services occur after the buyer and seller have executed a contract for the sale of a business. Escrow, closing or settlement services are those administrative and clerical services required to carry out the terms of the sale contracts such as the following:

  • Confirming removal and satisfaction of contingencies in the contract
  • Facilitating equipment, building and health department & other inspection(s)
  • Following up with the parties to ensure that the transaction progresses to closing
  • Virtual and in-person signing services for closing
  • Virtual Notary Services (video based)
  • Pre-close packaging and review
  • Collecting casualty insurance or certificates of insurance if needed
  • Ordering lien payoff figures, facilitating payoffs & lien releases
  • Obtaining and reviewing a title abstract and title insurance for real property
  • Reviewing title curatives
  • Determining the status of utility services and following up with parties for their transfer
  • Making mathematical calculations involving the proration of taxes, utilities insurance, rent, interest and the like in accordance with the contract or local custom
  • Completing form documents selected by and in accordance with the instructions of the parties to the transaction
  • Prepare liquidator’s permit application for SLA to transfer alcoholic beverage inventory
  • Prepare and file UCC finance statements
  • Certificates of incumbency
  • Prepare bill of sale
  • Prepare assignment and assumption of lease or other contracts
  • Prepare assignment of trademark
  • Prepare assignment of copyright
  • Prepare assignment of domain name and social media account
  • Draft non-compete
  • Draft business inventory and equipment schedules
  • Ordering certificates of good standing
  • Ordering franchise tax search
  • Prepare and file UCC finance statement termination
  • Obtaining lien waivers from secured creditors, mechanics or materialmen in a form acceptable to the parties in interest
  • Ordering surveys
  • Explaining the legal obligations of the parties under the sales contract
  • Explaining the meaning of legal terms used in taking title to business and/or property or advising the parties to the transaction various legal options to accomplish their mutual goals
  • Explaining the legal obligations of the parties under the loan documents
  • Explaining the legal effect of an item reported as an exception in a title commitment
  • Explaining the legal effect of a document in the chain of title
  • Receiving and issuing receipts for money received from the parties (deposits)
  • Preparing settlement statements
  • Determining that all closing documents conform to the parties’ contract requirements
  • Setting the closing appointment
  • Receiving and disbursing settlement funds
  • Ascertaining that the lender’s instruction has been satisfied
  • Borrowing resolutions
  • Transaction approval resolutions
  • Prepare bulk sales notice
  • Conducting a closing conference at which the documents are executed
  • Handling or arranging for the recordation of documents
  • Sending recorded documents to the parties (and lender where applicable)
  • Instructing or assisting a party in the completion of a legal document
  • Return of closing package
  • Guide buyer and seller through the closing and title transfer process

Fees not included would be checks payable directly to a government agency or service provider or to the law firm if it pays these fees on their behalf.  These are typical fees required by each party for closing whether hiring a settlement agent or other third party to assist. Each transaction is different.  Once we receive a copy of your purchase contract, we can provide you with an outline of what fees to expect and when they will be due. 

Our Firm has been a business and transaction attorney for over 25 years and able to assist with simple or complex transactions.  We work with business buyers, sellers, attorneys, real estate agents, business brokers, investors, and private lenders to get the job done!   Call our office at (585) 247-9170 or send your purchase contract to BBurton@TracyJongLawFirm.com to get started today!