Posted November 05, 2018 07:30:56 The process by which a company sells its buildings to buyers and its tenants can be as complex as it is profitable.
A liquidation business can have as many as 20 different owners and the process can be anything from an outright sale of the company to a process called “dispersal” in which the company takes out loans and buys properties to move to another jurisdiction.
In either case, a buyer or seller of a building, called a “partner,” must complete a formal process with the government before selling the building, according to the Institute for Local Self-Reliance’s Liquidation Market Guide.
The Liquidation Process: What to Know What happens to a building when it’s sold?
The company selling the property will generally put a $5,000 down payment on the property.
If the buyer wants to buy the building and move to the jurisdiction, the company will pay $10,000 upfront.
If they want to stay and keep the property, they’ll need to pay $15,000.
If someone wants to leave the jurisdiction and move somewhere else, they’d need to repay the company the $10 and $15 they’re paying for the property right away.
The sale goes through when the buyer moves, but it may take a few months for the buyer to get the paperwork to the buyer’s home and start paying for everything, according the guide.
The buyer then gets to take ownership of the property and begin paying the lease.
How does the liquidation process work?
First, the buyer or buyer’s agent will set up an initial “market-based” agreement with the seller.
The seller will pay the seller for the right to use the building.
If a buyer does not want to pay the entire purchase price, the seller may take out a loan.
Once the loan is paid off, the new owner will then have to pay off the loan and pay for the building again.
The next step is to move out of the jurisdiction.
After the building is vacated, the government then takes ownership of that property.
Once a property is in government hands, the property becomes a public entity, like a city or county.
Why should I care?
The process of liquidating a building can be very complex and time-consuming.
To help people understand how the process works, we created a video that explains how the liquidations process works in the US.
It’s a fun way to learn about how a liquidated business works in your state and help you make the best decision for your own family and property.
You can also find more information on the Liquidation Guide at the National Institute of Health.
Sources: Institute for Livable Communities, Medical News Now