Private School Sale and Purchase Agreement

Student enrollment agreements are typically transferred to the buyer through an assignment clause in the purchase agreement. The buyer legally assumes the obligation to provide the agreed-upon education, while the seller transfers all prepaid tuition and security deposits to an escrow account for the buyer. Parents must be notified of the ownership transition in writing according to the timeline specified in the original enrollment terms.

Accreditations do not automatically transfer to a new owner and often require a formal review or re-application process with the accrediting body. The agreement must include a condition precedent that the sale will only close once the accrediting agency approves the transfer or issues a temporary operating permit. Failing to secure this approval beforehand can result in the immediate loss of the school's credentials and student funding eligibility.

The agreement must feature a pro-ration clause that defines a specific cut-off date, usually the closing date, for all financial accounts. Any tuition collected for teaching periods after the closing date goes to the buyer, while outstanding debts incurred prior to the closing remain the responsibility of the seller. A designated escrow holdback is commonly used to resolve any uncollected tuition balances discovered after the transition.

This depends entirely on the intellectual property provisions written into the purchase agreement. If the buyer wants to maintain the school's brand identity and educational style, the agreement must explicitly transfer all trademarks, logos, domain names, and proprietary lesson plans. If the seller wishes to open a new school elsewhere using the same name or curriculum, this must be negotiated and carved out as an exception in the non-compete clause.