Asset Sale Agreement
This Agreement allows for the sale and transfer of assets between one party and another.
4.7 (3 reviews)
Last updated January 13, 2025
Under 20 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This Asset Sale Agreement is a legal contract between a Vendor, who owns or has an interest in specific assets, looking to sell these assets to a Purchaser for a predetermined price. This type of agreement can be beneficial when a business owner wants to sell their business or specific assets of the business, or when a potential buyer sees value in acquiring these assets.
The Vendor retains ownership of the assets until the purchase price is received. If payment has not been received, the Purchaser acts as the Vendor's bailee and fiduciary agent. The agreement grants the Vendor the right to enter the premises and repossess the assets in case of a breach of the agreement by the Purchaser.
What does the Assets Sale Agreement Include?
- Purchase price.
- Completion date.
- Allocation of risk.
- Confidentiality and dispute resolution.
The Legal Risk Score of a Asset Sale Agreement Template
Our legal team have marked this document as medium risk considering:
- The document stipulates that the ownership of the assets remains with the vendor until full payment is received, which could expose the purchaser to the risk of not securing immediate control over the assets despite having initiated the transaction.
- The agreement may concern large assets.
- The purchaser is required to insure the assets and bear the risk of loss from the execution date, which could result in financial loss if any damage occurs to the assets before they are fully paid for and ownership is transferred.
Asset Sale Agreement Checklist
Complete your free Asset Sale Agreement with our checklist
Verify Payment Compliance
Ensure that the Purchase Price is paid in full by the Completion Date as stipulated to secure the transfer of asset ownership.
Confirm Asset Transfer
Verify that all physical assets and relevant documents, including keys and title deeds, are transferred to the purchaser on the Completion Date.
Update Insurance and Risk Management
Maintain insurance on the assets and manage all risks associated with them from the Execution Date, as the purchaser bears the risk of loss once the agreement is executed.
GST and Tax Compliance
Check that all GST and tax-related obligations are fulfilled according to the terms of the agreement to avoid any unforeseen liabilities
It's never been so easy
Sign-up to a free Lawpath account
Get started and we’ll take care of you. It’s that easy.
Collaborate with e-Sign and Sharing
Having access to your legal documents has never been easier. You can request e-signature, share the document and download for an efficient collaboration.
Create unlimited legal documents and eSignatures for only $39/month.
Upgrade to a Lawpath legal plan to boost your new business.
Here's what people say about Lawpath’s Asset Sale Agreement
Reviews are managed by BazaarVoice and comply with the BazaarVoice Authenticity Policy. Reviews are independently verified by BazaarVoice and detail our customers' real experiences.