We never fail to be surprised by the volume of deals made in the aviation industry with no formal terms. Nobody would ever think about buying a house without clear documentation. However, this is a common case in aviation, especially in the smaller aircraft market when buyers are more reluctant to spend additional money on items such as searches for titles, screening fees, and legal advice.
Agencies provide these services to aircraft owners including aircraft title searching and escrow, which can give a buyer valuable aircraft information and security in their purchase. Buyers can find out the name of their registered aircraft owner and whether the interest on the aircraft exists for a bank or any other organization, without spending too much.
An essential case for aviation, Philko v. Shacket involved an unscrupulous salesman who sold two separate buyers the same aircraft. Dishonest people do exist, as much as we do not want to admit, and some of them know that they do not possess or have a right to sell certain planes to purchasers.
A straightforward search of the FAA records may help to avoid this.
Buyers can avoid title problems which may lead to an aircraft being grounded by looking for the FAA records before buying a plane. The FAA has strict rules as to the documents to be submitted. If any of the documents are incorrectly filed, the FAA may refuse to register them.
For anything about the aircraft including title search, escrow for the transaction, and registration issues, you can contact us at AeroTitle. We have an experienced team to handle any difficult situation while purchasing your aircraft. Let us have your back so you can take to the skies.