How much should the deposit be?
Deposit is typically 10% of the purchase price. We can adjust that if you like, although we don't recommend it.
Is the deposit refundable?
Deposits are refundable. They become non-refundable after each of the following items has been satisfied:
In the event of a dispute, the escrow company is not the judge or jury in deciding who keeps the deposit. The escrow company will return the funds to the buyer. If the seller believes they are entitled to the deposit, they will need to pursue legal action.
To protect your interests, it's crucial to communicate clearly and always use escrow to keep your deposit secure. The escrow company will not allow the seller to keep your deposit simply because they claim it. Any disputes must be resolved in court.
Who pays for escrow?
Escrow is split 50/50 between the buyer and seller and is paid automatically when you close escrow on your aircraft.
How much does escrow cost?
Typically, for light general aviation aircraft, escrow costs between $300 and $500 for each buyer and seller, depending on the price of the aircraft. Larger aircraft tend to have higher escrow fees.
How much does Aircraft Purchase Agreement cost?
The cost is $99 for each buyer and seller and is automatically paid when you close escrow on your aircraft. You pay nothing if you don't close.
Why isn't each party responsible for their own attorney's fees in the event of a dispute?
Requiring the losing party to cover the prevailing party's attorney's fees serves as a deterrent against frivolous lawsuits. This ensures that neither side is incentivized to pursue legal action without valid grounds, as they could be held responsible for the other party's legal costs if they lose the case.
If the deal does not go through, am I charged by Aircraft Purchase Agreement?
No. You are only charged when escrow closes. If the deal falls through, you pay nothing. You are welcome to use our service as many times as you like to find the right aircraft.
If the deal does not go through, am I charged by escrow?
No. In most cases, you are only charged when escrow closes. If the deal falls through, you pay nothing.
Are you technically our broker?
No, we do not represent the buyer or seller in any way. Our role is to facilitate the transaction by automating and streamlining the process for both parties. We provide the following services to help move the transaction along quickly and efficiently:
Is the purchase agreement available to view?
The Aircraft Purchase Agreement is the new industry standard designed with both the buyer and seller in mind to complete the aircraft sale in the most efficient way possible while protecting all parties involved. A sample is available to view at the bottom of the "How It Works" page.
Is the deposit credited toward the purchase price of the aircraft?
Yes. If the purchase price is $100k and you put down a 10% deposit of $10k, then the remaining balance due at closing will be $90k, plus about $300 for escrow and $99 for the Aircraft Purchase Agreement.
How do I choose a closing date?
When setting a closing date, I recommend choosing a date roughly one month out. This usually provides ample time to coordinate a pre-purchase inspection, test flight, and other necessary steps. If you need to extend beyond this date, it’s not a big issue as long as both parties are actively working towards completing the sale. If you're able to close sooner, that's great—just maintain clear communication with the seller. Keep in mind that escrow typically requires 3-5 days' notice to finalize the closing.
Do I need insurance for the test flight or flight to and from the pre-purchase inspection location?
It depends. If you do the test flight with someone already insured on the aircraft—typically the owner—additional insurance usually isn't necessary. However, if you, your instructor, or a ferry pilot will be flying the aircraft, you'll need to arrange coverage. In most cases, you can set up short-term insurance with your provider for the test flight or flights to and from the inspection.
Do I need a Bill of Sale or registration?
Yes, but these items will be handled by escrow. They will gather the necessary information from you and request digital signatures. All forms will be filed with the FAA on your behalf. Once the transaction closes, escrow ensures the documents are sent to the appropriate parties, making the process seamless.
Can closing day be different from pick-up day?
Yes, if both the buyer and seller are comfortable with closing remotely. You can always arrange to pick up the aircraft later. While many buyers prefer to close on the same day they pick up the aircraft, it’s not required. You have flexibility in how to handle it.
The pre-purchase examination came back with a list of items that need to be fixed. Now what?
This is common—no aircraft comes back from a pre-purchase examination completely clean. According to the purchase agreement, you have four options once you receive the results:
If you choose options 1, 2, or 3, the deposit becomes non-refundable after this point. Be tactful in negotiations for a fair outcome.
There's no standard for pre-purchase examinations. What should I have them look at?
Refer to Mike Busch’s article, Pre-Buy Do’s and Don’ts in our E-Guide section for detailed information. A pre-purchase examination should never result in a logbook entry, unless the buyer closes on the purchase of the aircraft and then opts to convert the pre-buy into an annual inspection.
How much should the pre-purchase examination cost?
It varies, as every examination is unique, and you may want the mechanics to "dig deeper." Typically, pre-purchase examinations for light GA aircraft range between $300 and $2,000.
I just sold my aircraft. What do I do with the old registration?
The old registration must be removed from the aircraft before the new owner takes possession. Sign and date the registration and mail it back to the FAA at the address on the form within 21 days.
I'm coordinating the closing time with the buyer or seller. Are there specific days or times that are more advantageous?
It's best to close earlier in the week, like Monday through Wednesday, to allow more business days to resolve any issues before the weekend. Close early in the morning, especially if you're on the West Coast, as escrow wire transfers and FAA document filing have afternoon cutoff times.
Can I get financing on an aircraft with missing logbooks or damage history?
It depends on the financing company and their specific policies. Confirm details with your lender early to avoid disappointment if financing falls through due to issues like missing logbooks.
Where can I quickly find the aircraft serial number?
You can typically find this number in the aircraft logbook on the front cover pages. You'll need it to sign up for the Aircraft Purchase Agreement and set up escrow.
The title check came back with a cloud. Can we still close?
You can pay escrow an additional fee to clear the title, but if clearing the title becomes difficult and you're paying cash, you may still proceed. The escrow company will provide a waiver for you to sign, acknowledging the clouded title. A "cloud" refers to any lien or unclear transfer of ownership.
There’s no standard Pre- Purchase Examination to follow. What should I have them look at?
You should refer to our E-Guides section and read Mike Busch’s Pre-Buy Do’s and Don’ts. There is a wealth of information in there regarding pre purchase inspections. You should not just do an annual on the aircraft because you saw that on a Facebook group. Please go read Mike Busch’s Articles.
What are your thoughts on purchasing an aircraft with a missing logbook?
An aircraft with a missing logbook can still be a fantastic buy, especially if you negotiate a discount to account for the unknown history. Typically, you can expect a 5-10% reduction in price. For example, if a logbook from 1972 is missing, it may not be a major concern—after all, the aircraft has likely passed 52 annual inspections since then. If any significant issues had existed from that time, they would have surfaced by now. A more recent logbook that is missing should be discounted further as there is more risk involved for the unknown period.
However, one potential hurdle is financing. Lenders have different policies regarding missing logbooks, so it's essential to check with your finance company before moving forward with the purchase of an aircraft missing part of its records. This can help avoid any surprises or delays later in the process.
Thoughts on purchasing an aircraft with damage history?
Much like a missing logbook, an aircraft with damage history can still be a fantastic buy. Older damage, or damage that has been properly repaired and documented, is often a non-issue. For example, if the aircraft has undergone 10 or more annual inspections since the incident, and the logs show no recurring problems, it's likely in good shape.
Every situation is unique, so it's important to investigate the specific damage history and consult with a qualified A&P mechanic to get their perspective on how the repairs were handled and documented. Don't dismiss the aircraft entirely—damage history doesn't automatically make it a bad buy, and you might still be getting a great deal.
However, financing is another factor to consider. Lenders have different policies regarding aircraft with damage history, so it's essential to verify your financing options early in the process. Most GA aircraft are older, and it’s rare to find one without any damage history. In fact, many retractable gear aircraft have had at least one gear-up incident.
In conclusion, always consult a qualified mechanic and thoroughly research the damage history. But don’t write off the aircraft—it could still be a perfectly good airplane and an excellent deal.
I'm approaching the one-year mark of owning my aircraft and have yet to receive my permanent registration. What should I do?
This is not super uncommon and does occasionally happen with how busy the FAA is. You should contact the FAA Aircraft Registration Branch as soon as possible to inquire about the status of your permanent registration. They can assist you with the next steps and provide guidance if an extension for the temporary registration is needed.
Contact the FAA Aircraft Registration Branch at:
Make sure to follow up before your temporary registration expires to ensure you remain compliant with FAA regulations.
I need to obtain a special flight permit for the aircraft I purchased. How do I go about that?
To get a special flight permit, commonly known as a "ferry permit," you'll need to contact your local FAA Flight Standards District Office (FSDO). They will guide you through the process and provide the necessary forms and instructions. The basic steps include:
The FSDO will review your request, and once approved, they will issue the special flight permit, allowing you to legally operate the aircraft for the specified purpose.
I'm planning on selling my aircraft. What's the best listing website to use?
In general, Trade-A-Plane is the top choice for listing your aircraft. It offers the best value for your investment and typically generates the highest quality leads. While other cheaper platforms, like Facebook Marketplace that are free, might seem appealing, I’d recommend steering clear. Although you'll likely get a lot of attention, most of it will be from tire kickers, leading to wasted time responding to inquiries that don't go anywhere. Stick with a trusted platform like Trade-A-Plane for a smoother, more efficient selling experience. That’s where the serious buyers are going.
Aircraft Purchase Agreement
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