Aircraft Purchase Agreement

[Strutwipe]

Hi All,

I am in the process of purchasing my first aircraft, yes I'm very excited. It's a "78" PA38.
I think I know the answer to this question but how would you interpret this statement in the APA?

"It is understood the seller has in his possession an “open” FAA Bill of Sale from the current registered owner which he will provide to the escrow agent prior to closing."

The owner has only just bought this acft this past week but cannot obtain insurance, so I think he has not file the ownership with the FAA.

Since I do not have experience in these type of matters, will this be an issue?

 

[Rgbeard]

Someone smarter than I will be along to answer

all I can say is - welcome to the T-tail club!

 

[schmookeeg]

Chain of ownership issues is exactly why Escrow earns their fee. I use escrow for estate issues or where there are sketchy liens or stories about money. Escrow will only release your cash when everything is set that will satisfy the FAA in exactly the way they need it. Sounds like the seller is already ready to work on escrow with ya.

I would use any documents that the escrow co offers up, even if it was a cocktail napkin. Present the scenario to them, and follow their instructions, or let them secure it all with the seller.

Also I hope the seller is fine with you choosing which company to use. Any of the big ones in OKC seem good. I think I used AIC Title last.

Congrats on the plane! I'm having trouble understanding who would be uninsurable in a tomahawk, but awesome situation for you, especially in this insane market

 

[BrianNC]

Speaking of Tomahawks, here is a video of one that mojogrip posted yesterday. Prettiest and most well-equipped one I've ever seen.

 

[Strutwipe]

Chain of ownership issues is exactly why Escrow earns their fee. I use escrow for estate issues or where there are sketchy liens or stories about money. Escrow will only release your cash when everything is set that will satisfy the FAA in exactly the way they need it. Sounds like the seller is already ready to work on escrow with ya.

I would use any documents that the escrow co offers up, even if it was a cocktail napkin. Present the scenario to them, and follow their instructions, or let them secure it all with the seller.

Also I hope the seller is fine with you choosing which company to use. Any of the big ones in OKC seem good. I think I used AIC Title last.

Congrats on the plane! I'm having trouble understanding who would be uninsurable in a tomahawk, but awesome situation for you, especially in this insane market

Going through Aero Title. He is 80+ with health issues. Sounds like he just wanted to live the flying life again. At least that is the story I was told.
Best,
Mark

 

[Strutwipe]

Speaking of Tomahawks, here is a video of one that mojogrip posted yesterday. Prettiest and most well-equipped one I've ever seen.

I wish I never saw that cream puff. This one still has original paint but at least nothing will be covered up.

 

[midlifeflyer]

Hi All,

I am in the process of purchasing my first aircraft, yes I'm very excited. It's a "78" PA38.
I think I know the answer to this question but how would you interpret this statement in the APA?

"It is understood the seller has in his possession an “open” FAA Bill of Sale from the current registered owner which he will provide to the escrow agent prior to closing."

The owner has only just bought this acft this past week but cannot obtain insurance, so I think he has not file the ownership with the FAA.

Since I do not have experience in these type of matters, will this be an issue?

The problem with the AOPA Bill of Sale is that's it contains options which may or may not apply to the specific deal. FWIW, I have seen a sale using the AOPA form in which the self-help buyer and seller removed something they thought was unimportant. Guess what the later lawsuit was about.

The provision you are quoting contemplates a sale by someone who is not the current owner of record. The "seller" might, for example be a broker who is holding a blank bill of sale signed by the current owner.p, but I've seen it used in other situations as well.

That might or might not be your situation. Bottom line, if you don't understand it, have the actual transaction reviewed by someone who does.

PS. Good luck with a Tomahawk. I learned in one and love them.