What ABC Form 226 Requires for License Transfer Escrow
Form ABC-226 is the escrow verification statement that California requires for every retail liquor license transfer. It confirms under penalty of perjury that the purchase price has been deposited with a neutral escrow holder.
Every person who applies to transfer a retail liquor license in California must deal with Form ABC-226. This form is not optional. It is a sworn statement that tells the Department of Alcoholic Beverage Control that the money is in escrow and that the escrow agreement meets statutory requirements. At Secured Trust Escrow, we prepare and coordinate ABC-226 submissions as part of our license transfer escrow service.
What the Form Actually Says
Form ABC-226 requires the applicant to state under penalty of perjury that the full purchase price or consideration has been deposited in escrow with a neutral third party. The form must be submitted within 30 days of the transfer application filing. Copies go to the transferor and the escrow holder. The form becomes part of the official ABC file and can be reviewed during the investigation process.
Why the Escrow Holder Gets a Copy
The escrow holder receives a copy of Form ABC-226 to confirm that the applicant has accurately represented the escrow arrangement. If there is a discrepancy between what the applicant states and what the escrow holder confirms, ABC may investigate further. The escrow holder’s confirmation serves as a check against misrepresentation.
What Happens If the Form Is Wrong
If ABC discovers that the information on Form ABC-226 is inaccurate, the consequences can be severe. The transfer application may be denied. If the license has already been issued, it may be subject to revocation proceedings. The applicant could face perjury charges. This is why experienced escrow companies verify every detail before the form is submitted.
How Secured Trust Escrow Handles the Form
When we open an ABC license transfer escrow, we verify the purchase price, confirm the escrow agreement language meets statutory requirements, and coordinate with the applicant’s attorney to ensure Form ABC-226 is completed accurately. We retain a copy for our records and provide confirmation to ABC if requested. Our Torrance office has handled dozens of these forms for transfers throughout Los Angeles and Orange County.
ABC License Escrow in California
Secured Trust Escrow coordinates Form ABC-226 and full escrow administration for liquor license transfers statewide.
About the Author: This guide was prepared by the escrow officers at Secured Trust Escrow, a California DFPI-licensed escrow company with experience in business holding escrow, relocation escrow, liquor license transfers, and mergers and acquisitions throughout Los Angeles, Torrance, and surrounding areas.
Legal and Regulatory Disclaimer: This article provides educational information about escrow services. It does not constitute legal, tax, or investment advice. Escrow transactions involve complex legal and financial consequences that vary by transaction type and individual circumstances. Parties should consult with qualified attorneys and tax professionals regarding their particular transactions. California regulations and market conditions change periodically. Last reviewed: July 2026.
