| Office | California Department of Alcoholic Beverage Control (ABC), with the county recorder for the notice |
|---|---|
| Paperwork | A transfer application, a notice of the intended transfer certified by the county recorder, and proof of an escrow deposit |
| Timing | Plan for roughly a couple of months of review, and a temporary permit may let the buyer operate meanwhile |
Watch for this: The full purchase price must go into an escrow that pays out only after ABC approves the transfer.
The License Belongs to the Owner
A California liquor license is issued to a specific owner at a specific place. When the business changes hands, the buyer applies for a transfer, and the state reviews them before approving.
Escrow Comes First
When a business with a retail license is sold, ABC rules call for an escrow with a neutral third party before the transfer is filed.
The full price goes into escrow, and the agreement must release money only after ABC approves the transfer. The buyer shows proof of the escrow deposit within a set period after applying.
Pick an escrow holder who has handled licensed sales before. A mistake in the instructions can stall the money and the closing.
Notice and Review
For a transfer, the applicant obtains a notice of intended transfer certified by the recorder in the county where the premises sit.
ABC then reviews the buyer, which can take about two months, sometimes longer. A temporary permit can let the buyer run the place during that wait, and it lasts for a limited period.
Buyers who have never held a license should expect questions about their background, funds and plans for the premises.
Ownership changes in corporations and LLCs can have their own forms, so ask which applies.
What Buyers Ask a Seller
Expect the buyer to ask for your current license, the date of your last renewal and any history of violations. Clean records make the review faster. Sellers should answer fully and quickly, since a gap in the story can add weeks.
What a Seller Should Plan For
- A closing date that depends on the state, not just the contract
- Escrow instructions that reflect the ABC rules
- Landlord approval of the lease assignment, which can take months
- Payroll and tax clearances running in parallel
Common Delays
Missing signatures, unclear funding sources and late escrow proof slow most transfers. Start the application early, answer questions the same week and keep your lender, landlord and escrow officer informed of each date.
Other Permits Move Separately
A health permit for a restaurant also belongs to the owner, and county environmental health usually wants the new owner to apply. Ask the county before the sale date.
Restaurants may also need a bulk sale notice. See the restaurant and brewery pages for what buyers check, and lease assignment for the landlord side.
This page is not tax or legal advice. Confirm each step with ABC, your CPA or your attorney.
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