Bulk-Sale Escrow

A bulk sale is what California law calls it when a business sells a substantial part of its inventory or equipment outside its normal course of operations, which is exactly what happens when someone sells the business itself. Because a buyer in that situation could otherwise end up on the hook for debts the seller never disclosed, California follows the Uniform Commercial Code's bulk sale provisions, which require formal notice to the seller's creditors before the sale can legally close.

That notice period is the part of a bulk sale escrow that looks unfamiliar if you've only handled property transactions before. Once the agreement is signed, escrow prepares and records the required notice, and then a statutory waiting period runs during which creditors have the chance to come forward with a claim against the sale proceeds. Only after that window closes, and any valid claims are addressed, does the remaining balance disburse to the seller.

Skipping or rushing this process isn't really an option since the notice requirement exists specifically to protect the buyer. We handle the filing and timeline so the transaction stays compliant, and we keep both sides updated on where things stand instead of leaving them to guess whether the waiting period has actually run its course.