Can an Arizona Business Broker Prepare the Contracts?
If an Arizona business broker is involved, the broker may prepare the purchase agreement and related documents. Disregarding the issue of whether the broker who prepares the documents is practicing law without a license, the parties should ask themselves “who does the broker represent when preparing the documents?” If the broker represents the seller, the broker may prepare the documents to favor the seller. Even if the broker prepares “neutral” documents, the documents may not sufficiently protect the buyer. Usually the broker’s most important objective is for the deal to close so the broker can get the commission. Many broker prepared purchase agreements and ancillary documents are drafted to not “rock the boat” or create issues that might cause the buyer or seller to refuse to sign the purchase agreement. Of course being an Arizona business lawyer I am prejudiced, but I recommend without exception that every buyer of an Arizona business consult with an experienced business attorney
