In business transactions, transferring a liquor licence is a key factor for businesses that serve alcohol. This ensures the business can be effectively operated by the purchaser following settlement. Whilst there are several ways to transfer a licence, the commercial standard is a transfer with the written permission of the outgoing licensee.
The application is completed online through Service NSW and can be initiated by the existing licensee, the proposed licensee, the premises owner, or the business owner. The application process can be broken down as follows:
- Compile Application: This will usually include items such as evidence of RSA and RCG qualifications, a NSW National Police Certificate, direct debit and data monitoring forms to show there are no outstanding payments on any gaming machine entitlements, and a current ASIC extract (for corporate licensees). Both the existing and proposed licensee will also need to complete an online declaration, the forms for which can be found on the Liquor & Gaming NSW website.
- Submit Application: Upload the required documents and submit for approval.
- Provisional Approval: In most cases, provisional approval of the licence transfer can be provided within four weeks. Provisional approval can be provided much sooner if the application is submitted online. A licence transfer does not become effective until provisional approval has been obtained.
- Licence Transfer: Confirmation of the transfer of licence usually occurs within 60 days. Businesses with provisional approval can continue to operate as usual while confirmation is pending.
Although the above process seems straightforward, it is imperative that any contract for the sale and purchase of business sets out the obligations of each party to avoid delays and potential disputes.
In preparing and negotiating a condition dealing with the transfer of a liquor licence, the parties ought to consider the following factors:
- Who will be responsible for payment of fees associated with the transfer?
- What timeframes will be required for provision of the documents required to prepare an application and for submission of the application?
- Is provisional approval sufficient for completion, or is confirmation of the transfer required?
- What happens if approval to transfer the licence is not granted?
- What happens if the licence is transferred prior to completion and the contract is not completed?
Baker Love Lawyer’s commercial team are experts in sales and purchases of business and can assist. Contact Baker Love Lawyers today for assistance with the transfer of a liquor licence.
ABOUT DEAN FRITH
Director
Dean is a commercial lawyer with an expansive practice ranging from all forms of legal transaction right through to large-scale multi-million-dollar corporate litigation, and everything in between.
As one of Newcastle’s top commercial lawyers Dean acts for many small to large scale businesses in Newcastle, the Hunter Valley and beyond. He draws heavily on technical competence, attention to detail, commercial acumen, and client satisfaction. He has a down to earth style and pragmatic approach to law that clients appreciate.
