Video Summary:

In this transcript from a video by Gale & Vallance, Orange County business attorney Andy Gale explains the steps for buyers in bulk sales California. When purchasing a business, buyers often overlook important procedures that can lead to unnecessary risk and liability. Andy walks through the essentials of how bulk sales work in California, including compliance requirements, notice obligations, and how proper legal guidance can help protect you throughout the process.

To learn more about the important steps for buyers in bulk sales California and how to protect your business interests, check out our detailed article on this process here.

Please note: this video does not constitute legal advice—we strongly recommend contacting an experienced business attorney to discuss your specific situation.

 [00:00:04] Introduction – What Buyers Must Do

okay so what is the buyer have to do if I or has to do four things first thing they’ve got to do is they’ve got to go down and they’ve got to record with the county recorders office the fact that notice is being given to the creditors and typically the form is called a notice of bulk sale and there are specific things that need to be required or are required to be placed into the notice and if you want to know what those are if you’ll just read the link blog below that’s attached to it I’ll set out all of the specifics that need to be contained in a book sale notice here in the state of California.

 [00:00:40] Step 1 – Recording the Notice of Bulk Sale

so first the notice gets recorded secondly then the notice needs to be published and it must be published in a newspaper of general circulation and there are a lot of local newspapers that are set up to specifically to be in the business of doing this kind of publication they know exactly what they do once you give them the notice and typically they’ll charge a very small amount of money to do the publication.

 [00:01:03] Step 2 – Publishing in a Newspaper

and third what you’ve got to do then is you’ve got to give notice to the local tax collector by sending them a notice certified mail return receipt so those are the three things that you must do all and then the fourth and most important thing you must do is you must wait in the state of California a buyer must wait 12 business days at least 12 business days to give the creditors opportunity to get the notice and to file their proper claims against the assets that are going to be sold.

 [00:01:19] Step 3 – Notifying the Tax Collector

the buyer wants to do all of this stuff before you give money to the seller the reason why is that once the money’s gone over to seller more often than not it’s difficult if not impossible to get the money back and now the buyer is in the situation of dealing with these creditors and having to pay sellers debts rather than saying hey go chase after the seller I gave him the money.

 [00:01:56] Step 4 – Waiting 12 Business Days

so if you’ve got a key takeaway here what you want to do is make certain what one does the books a lot a la apply to be too if it does apply to you make certain that you comply and then three hang on to your money at least well business days until you know that the time period for having a creditor make a claim is gone.

 [00:02:16] Why Legal Guidance Matters

I hope that was helpful it’s a little bit complicated this is one of those many or is in business where I think it’s well advised to have a small business person hire an attorney that knows exactly what they’re doing let that attorney be there become their trusted advisor to their business and you will be well rewarded I think for the small amount of money that you’re going to pay to a qualified business attorney to help you dealing with this kind of a problem and many many others that come up in the life of a business owner.

 [00:02:44] Closing Remarks

again my name is attorney Andrew gallon I hope this information helps you.

Conclusion – Steps for Buyers in Bulk Sales California

Understanding the steps for buyers in bulk sales California is critical to ensuring a smooth business purchase and avoiding potential legal issues. From providing notice to creditors to complying with state filing requirements, each step plays an important role in protecting your investment. By working with an experienced attorney, you can minimize risks and move forward with confidence. For personalized guidance, contact Gale & Vallance in Orange County to discuss your business transaction today.