Old Herb and a pile of dollars

I had a call from Herb a few nights ago. He had that great sounding Queensland country drawl.

Herb is 73 years old. He was ringing about our Commercial Property Lease Agreement. He had sold his business as a going concern and kept the property to get the continuing income from the rent. I imagine this is a retirement strategy for many small business owners.

It was fairly late Saturday evening when he rang. He said, "I didn't think anyone would be there".

Old Herb started to tell me about how he has just sold his business and let the people move in without organising a lease agreement for the premises. He wasn't concerned about it but the buyers of the business, quite rightly, wanted an agreement in place.

The new owners of the business need to be severely scolded for taking such a huge risk. Their enthusiasm to get started on their business empire has left them extremely vulnerable.

What if old Herb got lucky last night?

He is probably sitting on a nice pile of cash from the business. The word would have gone round the local Country Women's Association that Herb suddenly looks better than he has for years. It is highly likely Herb is being targeted by a bevy of blue-rinse sirens. That sound you hear is fan forced ovens pumping out pumpkin scones and lamingtons. Herb could be in for an exhausting couple of months.

He already told me he had heart palpitations when his solicitor told him it would be around $900 to draw up a commercial lease.

If Herb dies with a smile on his face before the lease is organised, the new business owners could be in all sorts of trouble. Whoever inherits may want to bulldoze the property and being Queensland, will probably put in a canal development.

If the business is successful because of its location, that may be the end of things. Sure they can getting involved in legal action but what a waste of energy.

The purchaser of the business should have looked at our Sale of Business Kit before handing over any money to Herb. Just by looking at the page and seeing the list of contracts included in the kit you get an overview of what to be aware of and some questions to ask the seller.

A Sale of Business Agreement is rarely the only document you will need.

Here is a list of the other document templates included in the Sale of Business Kit.

Secured Loan Agreement
Confidentiality Non-Disclosure Agreement for Sale of Business
Assignment of Lease Agreement
Commercial Property Lease Agreement
Commercial Property Sublease Agreement
Business Lease Agreement
Option to Purchase Real Estate Agreement
Partnership Dissolution Agreement
Sale of Partnership Interest Agreement
Consultancy Agreement
General Partnership Agreement

So I wish Herb luck in his retirement. We have all heard that young bull, old bull joke. I hope Herb has a bit of old bull in him.