Liquor licences are highly regulated and strict compliance with the Liquor Control Act 1988 is necessary to operate legally.  If the licence is not in good standing, has been breached in the past, or has had work orders issued, the new owner could inherit various problems.

Licence Conditions May Affect Business Operations & Future Business Plan

Different liquor licences come with varying conditions, such as restrictions on trading hours, types of alcohol sold, or limitations on entertainment. Reviewing these conditions ensures that the buyer understands how they will impact the business’s operations and profitability.

If the buyer plans to expand or change the nature of the business (e.g., offering live entertainment or extending operating hours), the current liquor licence conditions may not permit these activities. Knowing the licence’s limitations in advance allows the buyer to make informed decisions about what they will be allowed to do in the future.

Whilst you can apply to have certain conditions varied or cancelled, it is important to have explored whether this will be possible, what will be required to obtain approval and how long this might take.

Public Interest and Community Concerns

As a licensee you have a responsibility to minimise offence, annoyance and disturbance that result from the operations of your venue.  If the venue has been subject to complaints or issues, such as noise disturbances or antisocial behaviour, the licence could be under scrutiny that may affect future plans that you might have.  For example: add a beer garden, present live bands, cater for functions and special events.

Financial Liabilities

Any outstanding debts, fines, or unpaid fees related to the liquor licence could be passed on to the new owner. It’s essential to verify that the current licensee is financially compliant to avoid inheriting hidden liabilities.

Potential for Revocation

If the previous owner has breached the liquor laws (e.g. selling alcohol to minors, allowing intoxicated patrons), the licence might be under threat of suspension or cancellation. Understanding the licence’s history is crucial to avoid purchasing a business that is under threat of losing its licence.

Licence Transfer Complications

Liquor licences are not automatically transferred with the sale of a business; the licensing authority must approve a formal transfer application before you can take over the business.  If the buyer does not meet the suitability criteria or if the application is incomplete, the transfer could be delayed or rejected, putting the sale at risk and/or having to operate without a licence.

Not all transfers are straightforward and will not always involve a sale of a business, in such instances legal advice should be sought on how best to achieve the transfer of the licence.

It is also important to note that settlement cannot take place until the transfer application has been approved.

In addition, during the transfer process the existing licensee must not vacate the premises and the applicant must not sell or supply liquor until approval has been given by the licensing authority. If the licensee has vacated the premises prior to the transfer application being lodged then consent for the transfer may be given with ‘leave of the Director’.

Why You Should Contact Fraser & Associates Lawyers

Fraser & Associates Lawyers can help you navigate the liquor licence transfer process and provide advice on any concerns you have about the licence and/or the existing trading conditions.

They will ensure you have all the information needed to make an informed decision about purchasing the business and guide you if there are restrictive trading conditions that might hamper your proposed business model.

One of the most challenging aspects of transferring a liquor licence is ensuring that all documentation is submitted correctly and on time and also when complications arise.

Fraser & Associates Lawyers can manage the entire transfer application process on your behalf, from preparing the necessary paperwork to liaising with the Licensing Authority up to approval, freeing up valuable time to let you get on with your planning and set-up.

Contact Fraser & Associates Lawyers today to discuss your liquor licence transfer needs and make your venue purchase a stress-free experience!