Aircraft bill of sale question

Sac Arrow

Sac Arrow

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How do you complete the aircraft bill of sale form (OMB 2120) in the case of a partnership? It would be a full owner selling a 50% interest to a co-owner.
 
New title is given listing current owner(s). Per tax due, declared value is equal to share sold.
 
So would the current owner appear both in the "purchaser" box with the new co-owner, and in the "seller" box?

There is only one place to enter a purchase price (which would be $1 OVC).
 
Sac Arrow said:
So would the current owner appear both in the "purchaser" box with the new co-owner, and in the "seller" box?

There is only one place to enter a purchase price (which would be $1 OVC).
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What you say seems logical but it is incorrect. Try to think how it would look when it comes across the desk of a non-pilot, non-owner pencil pusher. Keep it simple.
 
Doesn't sound correct to me either. But the form implies full transfer of title from the purchaser to the seller, how is it conveyed that the seller is retaining half the title?
 
Sac Arrow said:
How do you complete the aircraft bill of sale form (OMB 2120) in the case of a partnership? It would be a full owner selling a 50% interest to a co-owner.
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There is a block to mark, that says Partnership. mark it and fill it out as if the seller is selling back to you and him.

OBTW, there are two forms in circulation 8050-1 and -2..

the 8050-1 has the block to mark as a partnership.
 
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Tom refreshed my memory. There are indeed 2 forms to fill out. It is that easy. Don't over think this. Title wise, the owner is 'selling' it back to himself (plus other share holder).
 
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Tom-D said:
Why does it matter?
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Because if it's NOT in a partnership now, then it becomes easy for the individual on the title now to transfer ownership to the new owner as an individual.

Or, if it's in the name of one person (even though there are two owners), and the "other" owner is the one selling, than no re-registration is necessary, is it? The FAA already thinks there's just one owner.
 
If the airplane is titled to me, and I take you on as a partner, and never tell the FAA and re-reg it in the partnership, why would I re-reg it when you sell out back to me?

I know I have to re-reg it periodically anyway, but that's different.
 
TMetzinger said:
Because if it's NOT in a partnership now, then it becomes easy for the individual on the title now to transfer ownership to the new owner as an individual.

Or, if it's in the name of one person (even though there are two owners), and the "other" owner is the one selling, than no re-registration is necessary, is it? The FAA already thinks there's just one owner.
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You are over thinking it, we already know one person owns the aircraft and he is selling half.


it is simpler to enter into a civil partnership contract and leave the title alone. If the second person is worried about getting his money back when the aircraft is sold or wrecked, a simple lean on the aircraft will get him paid.
 
What hasn't been said yet is this an equity share or not? (The FAA wouldn't care but the share holder might.)
 
TMetzinger said:
Sorry I misread the question, I thought it was a 50% owner selling his share back to the partner.
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I had to read the OP's question a couple times before I understood what he was saying. It's worded kinda weird.

Either that or you see what you expect to see. :D
 
Are we all clear on this?


Situation is a single 100% owner selling half ownership to someone who will become a partner. If you're going to do this as a "partnership" (and there are a host of reasons not to do this -- ask your lawyer or tax professional for details), then...
  • the Purchaser block gets the names and addresses of both partners,
  • the word "our" goes in the blank in the line below that ("AND TO _OUR__ EXECUTORS, ADMINISTRATORS, AND ASSIGNS..."), and
  • the current owner puts his/her name and signature in the first line of the Seller block.
Alles klar?

In addition, you would be legally imprudent not to have a written partnership agreement in place before doing this -- again, ask your lawyer about how to do this as well as why you'd be better off with an LLC for this sort of arrangement.
 
Heed Levy's advice re partnership issues and need for advice prior to finalizing a deal.

Co-ownership (tenants in common vs. joint tenants) is usually preferable. If you elect to use co-ownership, the typical form for the agreement between and among the co-owners is a joint ownership agreement (JOA). Aviation lawyers are obvisously familiar with them.

The buy-sell provisions are a critical element of such agreements are critical elements that are often overlooked omitted. Be sure to think the deal through to conclusion prior to finalizing the sale.
 
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Richard said:
I had to read the OP's question a couple times before I understood what he was saying. It's worded kinda weird.

Either that or you see what you expect to see. :D
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Sorry for the confusion but Ron has understood my intent.

Ron Levy said:
Are we all clear on this?



Situation is a single 100% owner selling half ownership to someone who will become a partner. If you're going to do this as a "partnership" (and there are a host of reasons not to do this -- ask your lawyer or tax professional for details), then...
  • the Purchaser block gets the names and addresses of both partners,
  • the word "our" goes in the blank in the line below that ("AND TO _OUR__ EXECUTORS, ADMINISTRATORS, AND ASSIGNS..."), and
  • the current owner puts his/her name and signature in the first line of the Seller block.
Alles klar?

In addition, you would be legally imprudent not to have a written partnership agreement in place before doing this -- again, ask your lawyer about how to do this as well as why you'd be better off with an LLC for this sort of arrangement.
Click to expand...

Yes - understand that there needs to be a partnership agreement in place, that one I can figure out without too much difficulty. Regarding the wording, on the purchase agreement, that makes sense.

wabower said:
Heed Levy's advice re partnership issues and need for advice prior to finalizing a deal.

Co-ownership (tenants in common vs. joint tenants) is usually preferable. If you elect to use co-ownership, the typical form for the agreement between and among the co-owners is a joint ownership agreement (JOA). Aviation lawyers are obvisously familiar with them.

The buy-sell provisions are a critical element of such agreements are critical elements that are often overlooked omitted. Be sure to think the deal through to conclusion prior to finalizing the sale.
Click to expand...

This would be a function of the partnership (co-ownership) agreement, not the bill of sale itself, correct? Probably the wording on the registration form as well.

Anyway that helps. Thanks.
 
Make sure that any signature on the form has a printed name to go with it. I got my paperwork returned to me by the FAA registration document examiner...
 
Aircraft owned by LLC. Never changes unless change of address.

Co-owners buy and sell LLC shares at will. Separate private contracts between the LLC and the owners.

Why bother with changing the darn registration all the time? Waste of time.
 
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