Often, a seller may require the buyer to pay a deposit prior to completion of the sale. It’s important to understand the terms of the deposit, such as whether the seller is allowed to use the deposit money before the sale is finalised, or whether the deposit is held in trust until such time.
The sale of a business frequently involves a lease agreement. For example, if a business owner is operating in a space where he pays rent, you may be able to buy the business and equipment. However, the landlord will still own the space. We recommend getting legal advice when reviewing the terms and conditions of the lease.
All legal documentation needs to be explicit and clearly understood by both parties. We recommend getting legal advice before any contracts are made/ signed.