Contract for Sale of Professional Practice

Bahman Eslamboly

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This Contract for Sale of Professional Practice is between an established practitioner and a buyer who desires to purchase this practice. This contract sets forth the specifics of the sale including the leasehold interest, goodwill and any office equipment, consideration paid and allocation of the purchase price. It also includes the sale terms surrounding any assignment of lease, if accounts receivable are included, a covenant not to compete and the location and closing date of the transaction.

This Contract for Sale of Professional Practice contains the following provisions:
  • Parties: Sets forth the name of buyer and seller who is retiring and desires to sell the practice;
  • Sale of Practice: Details the practice being sold including any office lease, goodwill, equipment, records and files and other supplies located at the practice;
  • Consideration: Sets out the amount paid for the practice, any down payment and if the practice will be purchased via installment payments;
  • Accounts Receivable: Sets forth that the sale does not include any accounts receivable or debts due by seller at the time of sale;
  • Warranty of Title: Seller warrants that he/she has marketable title to all assets of the practice which are set out in an exhibit to this agreement;
  • Non-Compete: Seller agrees not to compete with buyer as an employee or partner of another business for a specified number of years;
  • Signatures: Both seller and buyer must sign this agreement.

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This attorney-prepared packet contains:
  1. General Information
  2. Instructions and Checklist
  3. Contract for Sale of Professional Practice
State Law Compliance: This form complies with the laws of all states

Contract for Sale of Professional Practice

Product Details

Product Contract for Sale of Professional Practice
Country United States
Pages 7
Dimensions Designed for Letter Size (8.5" x 11")
Printer compatibility Designed to print on all ink-jet and laser printers
Editable Yes (.doc, .wpd and .rtf)
Format Microsoft Word
Adobe PDF
WordPerfect
Rich Text Format
Platform Windows Compatible
Mac Compatible
Linux Compatible
Availability In Stock. Instant Download
Usage Unlimited number of prints
Category Contract for Sale of Professional Practice
Product number #43629
Download time Less than 1 minute (approx.)
Document Access Via secret online address
Email with download links
Email with attachment upon request
Refund Policy 60 days, no-questions asked, 100% money back guarantee

Frequently Asked Questions

The sale typically includes the practice's assets such as goodwill, office equipment, records, and any leasehold interests. However, accounts receivable may be excluded unless specifically stated in the contract.

The non-compete clause prevents the seller from starting a competing practice or working for a competitor for a specified period after the sale. This is designed to protect the buyer's investment in the practice.

This contract must comply with state laws governing business sales, including proper disclosures and adherence to licensing regulations. It's advisable to consult with a legal professional to ensure compliance.

Yes, the contract can outline terms for seller financing, where the seller allows the buyer to pay for the practice over time rather than in a lump sum. This can facilitate the sale and make it more accessible for buyers.

If either party fails to uphold their obligations under the contract, the other party may have legal recourse. This could include seeking damages or specific performance, depending on the circumstances of the breach.

Is This Form Right For You?

Use This Form If:

  • Individuals who are looking to retire from their professional practice may find this contract essential for transferring ownership to a buyer. It ensures that all terms of the sale, including the handling of goodwill and lease agreements, are clearly defined and legally binding.
  • Situations requiring the sale of a medical or legal practice often necessitate a formal contract to protect both parties. This document outlines the specifics of what is included in the sale, such as office equipment and records, ensuring transparency and reducing the risk of disputes.
  • For those acquiring an established practice, this contract serves as a critical tool to outline the terms of the purchase. It helps buyers understand their rights regarding the assets being sold and any obligations they may have, such as adhering to a non-compete clause.
  • Practitioners transitioning their business to a new owner can utilize this contract to ensure a smooth transfer of operations. The agreement details the financial aspects of the sale, including payment structures and warranties, which are vital for both parties' peace of mind.
  • Legal professionals may need this contract template to assist clients in drafting a sale agreement for their practice. By using a standardized form, they can ensure compliance with state laws and reduce the likelihood of legal complications post-sale.

Do Not Use If:

  • – This form is not appropriate for sales involving multiple sellers or buyers, as it is designed for a straightforward transaction between one seller and one buyer. Complex arrangements may require a more customized agreement.
  • – If the practice being sold is not established or lacks a clear valuation, this contract may not be suitable. In such cases, additional assessments and negotiations are necessary to determine fair terms.
  • – In situations where the seller has significant outstanding debts or liabilities, this contract may not adequately protect the buyer. Legal advice should be sought to address potential risks associated with the seller's financial status.
  • – This form should not be used for the sale of a practice that involves regulatory or licensing issues that are not addressed in the contract. Specific legal guidance is essential in such scenarios to ensure compliance with relevant laws.
  • – When the buyer is not prepared to fulfill the financial obligations outlined in the contract, it is advisable to reconsider using this form. Financial readiness is crucial for a successful transaction.

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