Structuring Liquor License and Other Permit Clauses in Hotel Purchase and Sale Agreements

Description

Efficient hotel purchase and sales require thoughtful drafting of the agreement and considerable due diligence by the buyer and the seller. Often, however, inadequate consideration is given to the language transferring the necessary licenses and permits that allow the new owner's lawful operation of the venture.

Most practitioners are aware of the strict regulatory environment that governs the issuance and transfer of liquor licenses for hospitality businesses and the wide variations between jurisdictions. Failure to consider specific jurisdictional processes when applying for license and permit transfers can cause otherwise competent counsel to unwittingly allow clients to violate the law by conducting business without the required interim licenses and permits for continued operations immediately post-closing.

Paying careful attention to the clauses addressing the potential gaps can mean the difference in whether a deal pencils out or falls apart.

Listen as our panel of seasoned real estate and alcohol beverage regulatory attorneys discusses how to draft tight permit and license clauses that help clients avoid costly pitfalls in negotiating and closing hotel purchase and sale agreements.