An aircraft transaction is not like purchasing and selling other products. It is a lot different to normal transactions. And, in the U.S., all the processes associated with an aircraft are handled and monitored by the FAA. Hence, whatever is your decision, selling or purchasing one, you have to go through a series of rules and regulations to make the transaction comply with all the terms of the FAA.
What is an Escrow Company?
Escrow is basically a financial transaction where a third party is involved to make and regulate the transaction on behalf of the other two parties. Generally, the companies who take this responsibility do the aircraft title search and escrow for their clients. It is indeed a difficult job and needs the utmost expertise to perform this.
An escrow company plays a significant role in aircraft purchase transactions. After the potential buyer makes a non-refundable deposit, escrow companies take its responsibility as a neutral third party to hold the papers securely along with the deposit. No matter, whether you are a buyer or seller, you will receive all possible help from the escrow company if you hire one.
What is the Process?
Once you seek their services, the company will appoint an agent to monitor and make the process smooth. The agent will be there to help you avoid any conflicts in the sales transaction. You have to make sure that the company to perform the aircraft title search and escrow is a mutual one and has to tie up with the buyer, seller or broker.
Upon finding an agreeable point with the seller and buyer, the buyer is supposed to submit a letter of intent. After its acceptance from the seller, the buyer submits the deposit to the escrow agent. This transaction is done in front of the buyer, seller and of course the escrow agent to avoid any fuss in the future. When the transaction is on its way to being completed, the seller and buyer both meet the escrow agent to release and take over the ownership documents.
The company takes charge of the aircraft title search and escrow. Along with the initiated transaction, they also perform the filing of the documentation that you need for an aircraft title search. Generally, most companies who deal with it have adequate knowledge in this field, but you should make sure the consideration is the best for you.
It is required to check the company’s eligibility to perform similar tasks. You can check the feedback from their previous clients and also the details of their services. AeroTitle is one of those reputable companies who have years of experience in this area. You can hire their service for a hassle-free transaction that will follow the FAA’s rules and regulations.