Closings glossary

Bulk sale

A sale of substantially all of a business's tangible assets, carrying New York bulk sale notice requirements. It comes up on commercial closings where an operating business transfers with the real estate.

What is a bulk sale in New York?

Quick Answer

A bulk sale is a transfer of substantially all of a business's tangible assets outside its ordinary course, which triggers a notice filing with the New York State Department of Taxation and Finance. Skipping that filing can leave the buyer liable for the seller's unpaid sales tax.

The full definition

A sale of substantially all of a business's tangible assets, carrying New York bulk sale notice requirements. It comes up on commercial closings where an operating business transfers with the real estate.

Where does bulk sale come up in a New York City closing?

A Bronx deal transfers the building and the laundromat inside it, and the bulk sale notice is filed ten days ahead so the tax escrow can be released later.

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