TRANSFERING A LIQUOR LICENCE

Here are some things you need to know if you are buying or selling a restaurant with a liquor licence: 

• The liquor licence is not an asset of the business and cannot be bought or sold.  A vendor cannot add an amount to the asking price to suggest the purchaser can buy the liquor licence for the additional price.
• A current, unexpired licence must be transferred to a new owner.  Until the transfer takes effect, the previous holder of the licence is responsible for assuring the liquor laws are complied with
• The holder of the licence can be held liable for any violation of liquor laws that occur after they have sold the restaurant if they have not transferred the licence to the new owner
• If the licence has not been officially transferred, the holder of the licence can be held liable in a civil action (for example, damages if a customer becomes intoxicated and causes an accident after leaving the restaurant) even after they have sold the restaurant
• A new owner does not have a valid liquor licence if it has not been properly transferred.
  
• You must submit a criminal record search form
• Consent for Disclosure of Criminal Record Information

Licence transfer and application forms are available to download.

If you are selling your restaurant, you must complete a transfer of license form that tells Liquor Licensing Branch (LLB) that you are transferring your license and the name of the person the license is to be transferred (the person buying the  restaurant or the designated shareholder of the corporation buying the restaurant. The form to notify the LLB is LCLB 001D.pdf. It’s  available at http://www.eia.gov.bc.ca/lclb/forms_fees/index.htm.  You may also go to the BC One Stop Business registry at http://www.bcbusinessregistry.ca/  to complete the transfer form.

IF YOU FAIL TO NOTIFY LLB OF THE TRANSFER YOU WILL CONTINUE TO BE RESPOSIBLE FOR ANY LIQUOR LICENSE VIOLATIONS THAT HAPPEN AT THE RESTAURANT, EVEN IF YOU NO LONGER OWN THE BUSINESS AND HAVE NOTHING TO DO WITH THE VIOLATION

Don’t let this happen to you : 

Amal sold his restaurant in 2006. He believed, wrongly, the new owner was automatically responsible for the Liquor License. The new owner, Bob, operated the restaurant under his own name, but the liquor license was in Amal’s name. Neither Bob or Amal bothered to tell LLB of the change in ownership.

In early 2008, a group of five people came into the restaurant.  The customers ordered mixed drinks before dinner, several bottles of wine with the meal and after dinner drinks.  The servers continued to fill the drink orders even though it was obvious the group were becoming intoxicated. Later that night, one of the customers was involved in a serious motor vehicle accident, driving impaired. The police learned he had been drinking at the restaurant and reported to Liquor Licensing. Amal’s name was still on the liquor license.  He was required to attend the violation hearing and his involvement may affect his future eligibility for a liquor license.  He is also named in a million dollar civil suit filed by a person disabled by the accident.

If you are buying a restaurant with a liquor license, you must apply for the license to be registered in your name within 6 weeks.  If you fail to do this the license to serve or sell liquor will be suspended automatically.  The form to apply to have the liquor license registered in your name is available at  http://www.eia.gov.bc.ca/lclb/forms_fees/index.htm.   Look for form number LCLB001c.  You will also need to complete a Personal History and Consent for a Criminal Records Check and a Consent for Release of Criminal Records. (forms LCLB004 and RCMP GRC3584)