Selling a business in Queensland is a major legal transaction. Under the REIQ Business Sale Contract, sellers must meet specific obligations to ensure compliance and avoid settlement delays or disputes.
1. Lease Assignment
If the business operates from leased premises, review the lease and related documents (e.g. Agreement for Lease, Incentive Deed) to identify any conditions for assignment. Landlord consent is typically required and obligations such as payment of the landlord’s legal fees or signing of consent deeds may apply.
2. Asset Disclosure and Encumbrances
Clearly distinguish between assets included in the sale and those excluded (e.g. personal vehicles). Identify which assets are owned, leased, or belong to the landlord. If any assets are subject to loans or charges, arrangements must be made to discharge these before settlement.
3. Employee Entitlements
Maintain accurate records of employee details—start dates, roles, and accrued entitlements (personal, annual, long service leave). These figures may affect the final sale price and must be disclosed to the buyer.
4. Financial Records
Ensure business financials are up to date. Buyers will expect access to books and records once the contract is signed. Transparency here supports valuation and buyer confidence.
If you’re unsure about any of these steps, consult a legal or accounting professional. At McNamara Law, we assist clients through every stage of selling a business—from contract negotiation to settlement.
