If you’re looking to purchase a new business, using aSettlement Services Agent might be an alternative to consider.  When a business transaction is notanticipated to be adversarial, both parties can use a neutral third-partyescrow agent to assist in closing the deal. Tracy Jong Law Firm offersend-to-end business escrow, settlement and closing support services.  Our virtual platform for closing services areespecially convenient for parties located in different cities, states andcountries.  This service offers anaffordable and expedited alternative to the traditional approach for both sidesor also for attorneys looking to outsource the drafting of legal documents andclosing services.  

What’s Included in a Settlement Service?

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

• Confirming removal and satisfaction ofcontingencies in the contract
• Facilitating equipment, building and healthdepartment & other inspection(s)
• Following up with the parties to ensure that thetransaction progresses to closing
• Virtual and in-person signing services forclosing
• Virtual Notary Services (video based)
• Pre-close packaging and review
• Collecting casualty insurance or certificates ofinsurance if needed
• Ordering lien payoff figures, facilitatingpayoffs & lien releases
• Obtaining and reviewing a title abstract andtitle insurance for real property
• Reviewing title curatives
• Determining the status of utility services andfollowing up with parties for their transfer
• Making mathematical calculations involving theproration of taxes, utilities insurance, rent, interest and the like inaccordance with the contract or local custom
• Completing form documents selected by and inaccordance with the instructions of the parties to the transaction
• Prepare liquidator’s permit application for SLAto transfer alcoholic beverage inventory
• Prepare and file UCC finance statements
• Certificates of incumbency
• Prepare bill of sale
• Prepare assignment and assumption of lease orother contracts
• Prepare assignment of trademark
• Prepare assignment of copyright
• Prepare assignment of domain name and socialmedia account
• Draft non-compete
• Draft business inventory and equipment schedules
• Ordering certificates of good standing
• Ordering franchise tax search
• Prepare and file UCC finance statementtermination
• 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 partiesunder the sales contract
• Explaining the meaning of legal terms used intaking title to business and/or property or advising the parties to thetransaction various legal options to accomplish their mutual goals
• Explaining the legal obligations of the partiesunder the loan documents
• Explaining the legal effect of an item reportedas an exception in a title commitment
• Explaining the legal effect of a document in thechain of title
• Receiving and issuing receipts for moneyreceived from the parties (deposits)
• Preparing settlement statements
• Determining that all closing documents conformto the parties’ contract requirements
• Setting the closing appointment
• Receiving and disbursing settlement funds
• Ascertaining that the lender’s instruction hasbeen satisfied
• Borrowing resolutions
• Transaction approval resolutions
• Prepare bulk sales notice
• Conducting a closing conference at which thedocuments are executed
• Handling or arranging for the recordation ofdocuments
• Sending recorded documents to the parties (andlender where applicable)
• Instructing or assisting a party in thecompletion of a legal document
• Return of closing package
• Guide buyer and seller through the closing andtitle transfer process

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

Our Firm has been a business and transaction attorney forover 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 lendersto get the job done!   Call our office at585) 247-9170 or send your purchase contract to BBurton@TracyJongLawFirm.com toget started today!