Form ABC-227 is the Notice of Intended Transfer that California’s Department of Alcoholic Beverage Control requires whenever a retail liquor license changes hands in a person-to-person sale. You record it with the county recorder in every county where the licensed premises sit, then include a certified copy with the transfer application you file with ABC. Its job is to put creditors on notice before the business and license move to a new owner.1Alcoholic Beverage Control. ABC-227 Instructions
When Form ABC-227 Applies
Use ABC-227 for person-to-person transfers of retail alcohol licenses governed by Sections 24073 and 24074 of the California Business and Professions Code. The typical trigger is a sale of a bar, restaurant, or liquor store to a new owner.1Alcoholic Beverage Control. ABC-227 Instructions
It is not the form for every change. If the ownership structure of a corporation, LLC, or limited partnership shifts and 50 percent or more of the stock or membership interests move to new people, the correct form is ABC-227-A under Sections 24071.1 and 24071.2. The entity stays the same, but the license transfers to the entity “as newly constituted.”2California Legislative Information. California Code Business and Professions Code BPC 24071.1 Pick the wrong form and the application stalls at the door.3Alcoholic Beverage Control. ABC-227-A Instructions
Record It With the County Recorder First
Before anything goes to ABC, the signed notice has to be recorded with the county recorder in every county where the licensed premises are located. ABC will not process your transfer application without a certified copy of the recorded notice.1Alcoholic Beverage Control. ABC-227 Instructions
Section 24073 requires the recorded notice to include:
- The name and address of the current license holder.
- The name and address of the person or entity acquiring the license.
- The type of license being transferred and the address of the licensed premises.
- An agreement that the purchase price will be paid only after ABC approves the transfer, with the full amount of consideration, how it breaks down (cash, promissory notes, property), and the name and address of the escrow holder.
If the recorded notice has a defect, or if the consideration amount changes after recording, ABC will not process the transfer until the eleventh day after a corrected notice is properly recorded.1Alcoholic Beverage Control. ABC-227 Instructions An eleven-day penalty for a typo is avoidable. Read the notice twice before you hand it to the recorder.
Filling Out the Ten Items
Most of the form is self-explanatory. These are the fields where filers slip up.
Item 1 — Licensee’s name. Enter the current license holder’s name exactly as it appears on the license certificate. A missing middle name or an initial standing in for a full name is acceptable; other discrepancies are not.1Alcoholic Beverage Control. ABC-227 Instructions
Item 2 — Premises address. The location of the licensed premises, again matching the certificate exactly.
Item 3 — Licensee’s mailing address. Where the current license holder receives mail. It can differ from the premises address.
Item 4 — Applicant’s name. The person or entity buying the license. It should match how the name will appear on the transfer application (Form ABC-211). Spell out all names; initials are not accepted. For a married couple, one name is sufficient.1Alcoholic Beverage Control. ABC-227 Instructions
Item 5 — Proposed business address. If the license stays put, repeat the premises address from Item 2. If the license is moving, enter the new location.
Item 6 — Applicant’s mailing address. Where the buyer receives mail.
Item 7 — Kind of license. Either the license description, such as “Off-Sale Beer and Wine,” or the license type and number. If you use a type and number, it has to be correct.
Item 10 — Total consideration. The full dollar amount being paid for the business and license, including inventory at actual cost, estimated cost, or a not-to-exceed amount. Break it down by payment type: cash, checks, promissory notes, demand notes, and any tangible or intangible property.1Alcoholic Beverage Control. ABC-227 Instructions Whatever number lands here has to match every other place consideration appears in the application package.
Who Signs
The current licensee (the seller) must sign the form, and only one seller signature is needed. The applicant’s (buyer’s) signature is preferable but not strictly required.1Alcoholic Beverage Control. ABC-227 Instructions Getting both signatures removes any ambiguity later.
What You File With ABC After Recording
Form ABC-227 is only the notice. The actual transfer runs on Form ABC-211, filed with ABC along with the certified copy of the recorded notice.4Alcoholic Beverage Control. ABC-211-A Instructions
Every individual tied to the application also submits Form ABC-208-A, the Individual Personal Affidavit. That covers sole owners and their spouses, general partners and their spouses, corporate officers, a majority of the board of directors, and anyone holding 10 percent or more of the stock or membership interests in a corporation, LLC, or limited partnership.5Department of Alcoholic Beverage Control. Individual Personal Affidavit Anyone on that list who is also putting money into the business completes Form ABC-208-B, the Financial Affidavit, as well.
Fingerprinting through California’s Live Scan system is standard. Live Scan rolling fees vary by provider, and the state processing fee for the background check runs roughly $32 to $42 on top of that. Check with your local ABC district office for current requirements on where and when to be printed.
ABC charges a transfer application fee that depends on the license type, and the department adjusts its schedule periodically. Check the current Application Fee Schedules on the ABC website before you submit; ABC will not process an application that arrives without the correct fee.6Alcoholic Beverage Control. Guide to Filing Mass Transfer Applications Payment is typically by check or money order to the Department of Alcoholic Beverage Control.
Submit the complete package to the ABC district office with jurisdiction over the licensed premises. The ABC contact page lists each office and its coverage area.7Alcoholic Beverage Control. Contact Hand delivery lets you confirm receipt on the spot; if you mail, use a tracked service. The most common preventable mistake is a consideration figure on the recorded ABC-227 that doesn’t match the figure stated elsewhere in the application. Keep every number aligned.
Keeping the Business Open While the Transfer Is Pending
A buyer who wants to keep operating during the review can ask for a temporary permit under Business and Professions Code Section 24045.5. To qualify, the premises must have been operating under a license within 30 days of the temporary permit application, the existing license must be surrendered under ABC’s rules, and the transfer application must already be on file.8Alcoholic Beverage Control. Information Concerning Temporary Permits A separate temporary permit fee applies. The permit itself is Form ABC-280, signed by at least one applicant.
Temporary permits are discretionary. ABC is not obligated to issue one, but for a routine person-to-person transfer at the same premises they are commonly granted.
After You File
ABC runs a background investigation on the applicant and on everyone required to qualify under the license, including anyone holding 10 percent or more of the stock or membership interests.3Alcoholic Beverage Control. ABC-227-A Instructions Examiners also confirm the license is in good standing and look for outstanding debts owed to creditors or wholesalers.
You get the final decision by letter sent to the business address on file. Approval updates ABC’s records to show the new licensee; denial comes with the specific reasons. Processing time depends on how complex the investigation gets and how busy the district office is, and the realistic range runs from several weeks to a few months. Build that window into the purchase agreement and any lease before you sign.