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Buying & Selling a Business

Can I be blocked from selling my professional practice if I'm under a college investigation?

TSL Written by the Treadstone Law team· Updated August 2026

An open college investigation doesn't automatically freeze your ability to sell a practice, but it complicates the sale considerably and can affect what a buyer is willing to agree to. Colleges generally retain jurisdiction over a professional's conduct regardless of whether they've sold their practice or even left the profession, so the investigation itself typically continues independently of the sale. What changes is disclosure: buyers doing proper due diligence will usually ask directly about open complaints or investigations, and failing to disclose one honestly can undermine the whole transaction, and potentially your standing with the college as well.

A pending investigation can also affect practical matters like whether a college will process a related notice of change in ownership promptly, whether malpractice insurers are comfortable providing continuing coverage, and whether a buyer wants price protection (through a holdback or indemnity) against a possible adverse outcome.

Because the specifics of how a given college treats a sale during an active investigation vary, and because misrepresenting the situation to a buyer or the college can create serious professional consequences, getting advice early — before you're already committed to a closing date — is the safer path.

Key takeaways

  • An investigation generally doesn't stop a sale outright, but it must be disclosed to a buyer.
  • The college typically retains jurisdiction over the investigation regardless of the sale.
  • Buyers may want holdbacks or indemnities to protect against an adverse outcome.
  • Get advice before committing to a closing date, not after a buyer asks questions.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone business lawyer can help.
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