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    I am buying printing machines from a printer whose business was closed by the landlord. How should I go about buying his equipment and customer list?
    Posted: 2012-12-04 05:00:13


    If you are buying machines alone from the printer, you may or may not need to comply with the Bulk Sales Act, which requires the purchaser to obtain an affidavit from the vendor stating that the vendor has paid all the creditors. This should be evaluated by a lawyer because if you do not comply with this Act you could end up being responsible for the debt of the vendor to the extent of the purchase price paid by you.

    The next step is to have the landlord agree to release the equipment. If the vendor was shut down by the landlord and he has seized the goods, the landlord is exercising the rights of the landlord to have his rent paid by seizing and selling. The landlord must release his interest by providing a document to you which should identify the goods.

    The next step is checking the Personal Property Security Registrations, which are kept on computer and can be checked at the PPSA office inTorontoor through the registry offices outside ofToronto. The PPSA system registers any liens which are kept under the name of the debtor (the owner of the goods) and creditors (the person who has the right of lien). You ask for the search by the name of the person from whom you are buying and the printout will show you the parties that have liens on the goods. There is some cost of having this search done. The liens are usually held by the banks and lending institutions which have the right to seize the goods if they are not paid.

    The lien holders that you find must release their interest in the goods for you to acquire a good title to the goods that you are buying. The vendor will usually provide a direction to pay the funds to the bank or lien claimant and they must release their interest and provide you with a discharge, which should be registered on the title.

    If you are not familiar with these procedures, it is safer to have a lawyer look after your purchase. He will make the searches and prepare a Bill of Sale for the transfer of the title to the goods. He will also prepare, if required, an agreement with the vendor stating that there are no liens. He may also obtain a sworn statement to that effect from the vendor. He will also have the right wording drafted for the landlord to sign its release of interest in the goods.

    Mr. Jay Chauhan has more than 30 years of experience practicing Commercial law, Family law, Immigration law, Wills and Estates, and Litigation. Mr. Jay Chauhan earned degrees, including a Bachelor of Science from the London School of Economics in England; a Barrister-at-Law at Lincoln's Inn in England; a Master of Economics at the Berlin University in Germany; and a Bachelor of Laws at Osgoode Hall in Ontario, Canada. He was called to the Bar in Ontario in 1972, England in 1965, and admitted as an Advocate in the State of Gujarat, India in 1982. You can learn more about Mr. Chauhan by visiting his website at http://www.jaychauhan.com/
    or reading his bio.


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