Bulk Sales Transfer Affidavit
Overview of this form
The Bulk Sales Transfer Affidavit is a legal document used by sellers of a business to disclose information about existing creditors and their claims. This form is essential to protect buyers by ensuring they are aware of any debts or obligations associated with the business they are purchasing. Unlike other sales documents, this affidavit focuses specifically on compliance with the Bulk Sales or Transfers Act under the Uniform Commercial Code, thereby safeguarding the buyer against claims by creditors after the sale is completed.
Main sections of this form
- Affiant's personal details, including name and address.
- Name of the business being sold, referred to as the Company.
- Statement affirming ownership and the right to sell the property.
- Declaration that the property is free from liens, encumbrances, or court judgments.
- Execution and date, including the notary's confirmation.
Situations where this form applies
This form should be used when a seller is transferring ownership of a business to a buyer. It is crucial when the business has existing creditors, as it provides essential information about any debts that could affect the buyer's rights to the business assets. Utilizing the Bulk Sales Transfer Affidavit helps prevent any post-sale disputes regarding unresolved claims from creditors.
Who this form is for
This affidavit is intended for:
- Business owners selling their business.
- Buyers looking to purchase a business and needing protection from creditor claims.
- Attorneys assisting clients in business transactions.
Steps to complete this form
- Identify the seller and their address.
- Provide the name of the business being sold.
- State that the seller owns the business and has the right to sell it.
- Declare that the property is free of encumbrances and obligations.
- Have the seller sign the affidavit in front of a notary public.
- Ensure the notarization date is completed and the notary public's details are filled in.
Is notarization required?
This document requires notarization to meet legal standards. US Legal Forms provides secure online notarization powered by Notarize, allowing you to complete the process through a verified video call, available 24/7.
Mistakes to watch out for
- Failing to provide complete and accurate information about creditors.
- Not obtaining a notarization, which may invalidate the affidavit.
- Omitting details about the property being sold.
- Signing the affidavit without understanding its implications for the sale.
Benefits of using this form online
- Convenience of downloading and filling out the form at your own pace.
- Access to legal templates drafted by licensed attorneys.
- Ability to customize the form to suit your specific transaction needs.
- Reduction of errors through guided step-by-step instructions.
Form popularity
FAQ
The sale of a large number of real estate properties at the same time as if they were one unit. The properties are not connected and usually have nothing in common except that they are sold in the same transaction.
The purpose of the Bulk Sale Statute is to protect a purchaser from inheriting any tax debt from a seller of business assets. A bulk sale is the sale (or transfer or assignment) of an individual's or company's business asset/s, in whole or in part, outside of the ordinary course of business.
The purpose of the bulk sales law (Act 3952) is to prevent the defrauding of creditors by secret sale or disposal in bulk of all or substantially all of the merchant's stock or goods.
The purpose of the Bulk Sale Statute is to protect a purchaser from inheriting any tax debt from a seller of business assets. A bulk sale is the sale (or transfer or assignment) of an individual's or company's business asset/s, in whole or in part, outside of the ordinary course of business.
The sale of a large number of real estate properties at the same time as if they were one unit. The properties are not connected and usually have nothing in common except that they are sold in the same transaction.
Under California law, a bulk sale is defined as a sale of more than half of a business' inventory and equipment, as measured by fair market value, that is not part of the seller's ordinary course of business. In order for the law to apply, the seller has to be physically located in California.
A bulk sales agreement sets forth the terms and conditions regarding the transfer of a large segment of the seller's materials, merchandise and the like. The contract must be for the purpose of transferring business assets.
