7 Costly Mistakes to Avoid –
At Secured Trust Escrow, we’ve seen it all when it comes to liquor license transfers. After processing thousands of successful transfers, we know exactly where things go wrong – and more importantly, how to prevent those expensive mistakes. Here are the top pitfalls to avoid for a smooth ABC license transfer.
Mistake 1: Starting the Process Too Late
The Problem:
Many business owners don’t realize ABC license transfers take 45-90 days on average. Waiting until the last minute can:
– Delay your business sale closing
– Force you to stop alcohol sales temporarily
– Cost thousands in lost revenue
Our Solution:
✓ Start gathering documents at least 3 months before you need the transfer completed
✓ Consider applying for a temporary permit if timing is tight
✓ Work with an escrow company that prioritizes fast submissions (like ours – we typically submit within 24 hours of receiving complete paperwork)
Mistake 2: Incomplete or Incorrect Paperwork
The Problem:
The ABC rejects applications for simple errors like:
– Missing signatures
– Outdated forms
– Incomplete financial disclosures
– Incorrect fee payments
Our Solution:
✓ Use our free ABC document checklist (just ask!)
✓ Have an escrow specialist review everything before submission
✓ Double-check that you’re using the most current ABC forms (they update them frequently)
Real-Life Example: Last month, we caught 12 errors in a client’s self-prepared application that would have caused a 60-day delay. Our review saved them $18,000 in potential lost sales.
Mistake 3: Not Using Specialized Escrow Services
The Problem:
Generic escrow companies often:
– Don’t understand ABC-specific requirements
– Miss critical deadlines
– Fail to properly secure funds
– Cause unnecessary delays
Our Solution:
✓ Work with an escrow company that specializes in ABC transfers (like Secured Trust Escrow – it’s 90% of what we do)
✓ Ask about their experience with liquor license transfers specifically
✓ Verify they have a dedicated ABC license transfer team
Mistake 4: Ignoring Local Zoning Laws
The Problem:
Your ABC license transfer can be denied if:
– The location isn’t properly zoned for alcohol sales
– There are schools or churches nearby (specific distance requirements apply)
– Local ordinances have changed
Our Solution:
✓ Research local zoning laws before signing any purchase agreements
✓ Consult with a liquor license attorney if you’re unsure
✓ Ask us about our zoning verification service – we’ll check for you
Mistake 5: Poor Communication Between Parties
The Problem:
Transfer delays often happen when:
– Buyers and sellers don’t coordinate document collection
– Responses to ABC inquiries are slow
– Contact information changes mid-process
Our Solution:
✓ Appoint one point person from each side
✓ Use our secure client portal for all document sharing
✓ Respond to ABC requests within 48 hours
✓ Notify all parties immediately of any contact changes
Mistake 6: Underestimating Costs
The Problem:
Many clients are surprised by:
– ABC filing fees ($1,000+ depending on license type)
– Escrow fees
– Attorney costs (if needed)
– Temporary permit fees
Our Solution:
✓ Get our free fee estimate upfront
✓ Budget at least $2,500-$5,000 for the entire process
✓ Ask about payment plans if needed
Mistake 7: Not Planning for Contingencies
The Problem:
Even with perfect preparation, sometimes:
– Background checks reveal unexpected issues
– The ABC requests additional information
– Third parties (like landlords) delay providing needed documents
Our Solution:
✓ Build in a 30-day buffer to your timeline
✓ Consider getting pre-qualified before making offers
✓ Have backup documentation ready
✓ Work with an escrow company that handles follow-ups (we do this for all our clients)
Bonus: Our Top 3 Tips for a Perfect Transfer
1. Use our document preparation service – We complete all forms for you to eliminate errors
2. Opt for our premium processing – We monitor your application daily and handle all ABC follow-ups
3. Get pre-qualified – Our free pre-qualification check identifies potential issues before you apply
Why Choose Secured Trust Escrow?
With a 99.3% success rate on first submissions, we’re California’s most trusted ABC transfer escrow provider because we:
– Specialize exclusively in liquor license transactions
– Have former ABC agents on staff
– Offer the fastest processing times in the state
– Provide transparent pricing with no hidden fees
Don’t risk your business’s alcohol sales – let the experts handle your transfer smoothly from start to finish.
📞 Call us today – we’ll show you exactly how to avoid these common mistakes.
