OPEN DEED OF SALE FOR BUYING AN EXISTING BUSINESS

Hi,

I wanted to buy an existing spa business in metro manila. But the owner told me that there's no contract involved, they can offer "pre-ownership for the business" only and they will send me the "open deed of sale".

Anyone here, please explain this to me. Thank you so much.

Hi rmwolfe,

As I understand from your email, you are intending to buy a spa business that is already in operation. This kind of transaction would need to have documentation to support the sale of the business and the transfer of assets or properties used in the business regardless of whether the seller (original owner of the business) is a corporation or a sole proprietor.

Nevertheless, the manner and type of document to be used for the transfer of the business may vary. In this case,it would be necessary to determine the status of the seller and how you would like to go about with the transfer.

-Atty. JB

rmwolfe wrote:Hi,

I wanted to buy an existing spa business in metro manila. But the owner told me that there's no contract involved, they can offer "pre-ownership for the business" only and they will send me the "open deed of sale".

Anyone here, please explain this to me. Thank you so much.

That sound odd.
What type of business form is it?
If it's SOLE P, then the business CAN'T be sold,
but the assets in it can be sold.
Check if the property owner aprove you - in writing.

If it's a COMPANY, then you can buy whole. (I BELIEVE no extra aproval is needed by property owner by the contract is done with the company, which will continue, but you better check that.

Include a paragraph the seller and relatives aren't allowed to compeete with you, using the contacts, which are sold to you, (Distance. Time limit.)