What is the name of your state? CA
Hello,
I went into contract to purchase a restaurant. Apparently the owner got an issue going on with BOE/CDFTA and they put a hold on entire sale amount. As a result, we could not close the sale and seller backed out.
We, purchasers took early possession of the business and started operating from the day we opened escrow. Lease transferred, new bank accounts, and vendors all getting paid through buyers.
We paid 20% of the amount into escrow which was released to the seller.
And also paid about 30% through the months with the understanding that it will be applied towards purchase price at the close of the escrow (verbal and not written).
The businesses made about 200K during that operating period.
I understand that Seller will need to return the early released amount to buyers due to sale fall out.
What happens to the profit that was made during this period? Who has the right to it.
The business is technically owned by seller as the sale was in pending and did not go through. At the same time, we as buyers operated the business. There was no such agreement between both parties on this scenario.
Seller says that since the business sale did not go through, we only operated and he owns the profits.
Please shed some light on how this can be legally treated and resolved.
Hello,
I went into contract to purchase a restaurant. Apparently the owner got an issue going on with BOE/CDFTA and they put a hold on entire sale amount. As a result, we could not close the sale and seller backed out.
We, purchasers took early possession of the business and started operating from the day we opened escrow. Lease transferred, new bank accounts, and vendors all getting paid through buyers.
We paid 20% of the amount into escrow which was released to the seller.
And also paid about 30% through the months with the understanding that it will be applied towards purchase price at the close of the escrow (verbal and not written).
The businesses made about 200K during that operating period.
I understand that Seller will need to return the early released amount to buyers due to sale fall out.
What happens to the profit that was made during this period? Who has the right to it.
The business is technically owned by seller as the sale was in pending and did not go through. At the same time, we as buyers operated the business. There was no such agreement between both parties on this scenario.
Seller says that since the business sale did not go through, we only operated and he owns the profits.
Please shed some light on how this can be legally treated and resolved.