Our Templates of Transfer Of Business Ownership Agreement
We’re ready to release our templates of transfer of business ownership agreement to the public. Our templates you’ll find here are all free. Simply download, edit if necessary and print them whenever you need it. There are no fine print or hidden costs. We hope that we can help you by covering all the technical details for a proper agreement. Keep reading to find more information about a transfer of business ownership agreement.
Transfer of Business Ownership
So, what is this agreement exactly? A business transfer agreement or BTA is as the name implies, to give a comprehensive sale of assets and liabilities of one person to another. Think of it as a form of a purchase and transfer of ownership agreement, where all the details regarding the sale or transfer of the business and its assets are recorded.
The agreement states the type of transfer, type of sale, terms of sale and details of the transferrable business or assets. BTA is used to list down all the assets, liabilities, capital, contracts, customer lists, leases, employee insurance, new employment rights, inventory, tax issues, copyrights and finally patents, pretty much everything that is entailed.
The way BTA is structured can be divided in two ways: first, it is structured as agreement to sell a business, where the business being sold is being laid down in details. The agreement itself does not guarantee an immediate transfer of the business, rather it’s designed to reach an agreement between any parties involved and the actual sale is affected by the agreements or documents that will follow after. In other word, BTA is no more than an intent to buy or sell that asks for more documents to follow in the future. Second, is where BTA is the one causes the sale and payment of the business. In this second form, BTA itself is effective and consummate the sale of the business undertaking.
To sum it up, business ownership can be transferred in a few ways. An outright sale is an immediate transfer of ownership where the seller can get a clean exit and the money upfront and a gradual sale is a more flexible option, where the buyer’s payments are financed. This gives mutual benefits for both parties.
We know that it can get really confusing just by reading about the agreement, check bellow for our templates of transfer of business ownership agreement.