A Bulk Sale is a type of escrow agreement placed on the sale of a business, which may include inventory and assets. The escrow serves to protect the interests of unsecured creditors; it eliminates the risk that the seller of the business will use the proceeds from the sale for purposes other than paying debts and/or taxes that may be owed.
The process of handling the sale of a business is different than the process of a real property sale. Therefore, the escrow process of a Bulk Sale requires an Escrow Officer who is highly experienced in handling the complications of a Bulk Sale escrow. Escrow of the West has Escrow Officers who are highly-versed in Bulk Sales and attend classes to continually stay informed of the constantly changing Bulk Sales laws.