Business Purchase in Leased Premises
Our closing costs for small business purchase transactions as set out hereinbelow is provided to you as an estimate only. With third party service providers increasing their prices at short notice or with no notice, it has become quasi-impossible for us to give you the usual "all inclusive" pricing for your business closings. Nevertheless, as usual, we endeavor to work with you to keep closing costs as reasonable as possible. We thank you for your understanding and cooperation.
CLOSING COSTS ON THE PURCHASE OF BUSINESS IN LEASED PREMISES
Our legal fees for acting on the purchase of a small business in leased premises valued at less than $500,000.00 Canadian Dollars is $1,995.00 plus H.S.T plus disbursements. For sale price more than $500,000.00, an additional charge of $95.00 plus H.S.T shall apply for each additional $100,000.00. This fee covers review of the agreement, preparation of requisitions, preparing all conveyancing documents, basic shareholder resolutions as may be applicable and includes attending the securing PST/WSIB Purchase Clearance Certificates if required.
VENDOR TAKE BACK MORTGAGES
A fee of $495.00 plus H.S.T plus disbursements. shall apply for any Vendor Take Back Mortgage related to the purchase transaction
TENANCIES BEING ASSUMED
Where tenancies are being assigned, and the leases are standard, an additional fee of $695.00 shall apply for the review of the lease, adjust rentals and attend to lease assignment agreement.
LICENCING AND OTHER SUPPLY AGREEMENTS
A legal fee of $495.00 plus H.S.T shall apply in connection with the transfer of any licensing or supply agreements, for e.g. fuel supply and distribution agreements for assumption by the buyer, or such other agreements that are to be transferred to the buyer.
For franchised businesses, an additional legal fee of $395.00 plus H.S.T shall apply in connection with the transfer of the Franchise Agreement and dealing with the franchise adjustments.
Disbursements are out of pocket expenses incurred by the law firm to clear title in favor of the Buyer to allow the Seller to complete the sale pursuant to the terms of the agreement. Disbursements would include but are not limited to, expenses related to securing corporate profile report, bankruptcy searches, pending litigation search, P.P.S.A searches, execution searches ($14.00 per name), certificates, etc. Also excluded are any conveyancer fees, fax, photocopy, courier charges, large wire transfer for payment charges or bank deposit charges that may apply to the transaction.
The following are excluded costs and will be solely at Buyer’s expense: Fire Department Search or file inquiries, Building and Zoning search reports, environmental clearances, expropriation inquiries and other searches that may be deemed important depending on the type of business being acquired.
EXTENDED CLOSING DATES
Please note that we endeavor to work with you to keep costs as low as possible and you will be advised should there be complications on your file that are not covered by the above-fee quote that may require additional time to be spent. Kindly note that for any work done not covered by the retainer and/or where the transaction fails to close as scheduled, additional fees in the sum of $295.00 plus H.S.T per hour may apply. Based on the 24 years of experience we possess the knowledge and experience to handle your transaction professionally and bring it to a smooth closing as scheduled.