Discrepancies in Aircraft Title Reports

[Fearless Tower]

Ran into another first this week when I received the results of my FAA record and title search on the Baron:

The title research company issues a discrepancy report in the chain of custody. Two discrepancies actually.

Both are (to me) pretty obvious common sense errors.

Both discrepancies involve a company XXXX Air Service buying the plane and then 10 years later XXXX Air Services sells the plane. Because of the typo, the title research company states that there is no record of transfer between the two entities, even though they are clearly the same (even same names/signatures on the bill of sale).

Question - does anyone even care about stuff like this? Like I said, it seems pretty bloody obvious to me....I am just suprised that the FAA let the discrepancies slide in the first place - lately, it seems that OK will kick back any transfer documents if the ink isn't the same.

Is this something that can be cleared up or is it even worth the trouble?

 

[wabower]

If you're getting title insurance through an escrow company, it's their battle to fight. That's why smart buyers use them.

Ran into another first this week when I received the results of my FAA record and title search on the Baron:

The title research company issues a discrepancy report in the chain of custody. Two discrepancies actually.

Both are (to me) pretty obvious common sense errors.

Both discrepancies involve a company XXXX Air Service buying the plane and then 10 years later XXXX Air Services sells the plane. Because of the typo, the title research company states that there is no record of transfer between the two entities, even though they are clearly the same (even same names/signatures on the bill of sale).

Question - does anyone even care about stuff like this? Like I said, it seems pretty bloody obvious to me....I am just suprised that the FAA let the discrepancies slide in the first place - lately, it seems that OK will kick back any transfer documents if the ink isn't the same.

Is this something that can be cleared up or is it even worth the trouble?

 

[Fearless Tower]

If you're getting title insurance through an escrow company, it's their battle to fight. That's why smart buyers use them.

Wayne,

Does title insurance automatically come with escrow services, or do you have to specifically request it? I have only done one aircraft deal through a broker with escrow and that one (the SNJ) fell through due to the pre-buy.

What does title insurance do for a case like this? Prevent the previous owner from somehow coming back and trying to reclaim the airplane based on the discrepancy?

 

[wabower]

Title insurance simply guarantees good title, same as houses and other transactions. Escrows are cheap and I use them even on my own planes just to eliminate a potential source of aggravation and expense that can be difficult to see in advance.

But I'm the guy who gets the calls to "help get me out of this mess" when things go wrong, so I probably see more of the other side than others.

If you want to discuss the service with an agent to obtain specific information, Denise Baustert at Insured Aircraft Title in OKC is a nice person and highly competent agent who has closed four transactions for us recently. 405-654-4882. I'd recommend talking with her to get a good grip on the scope of their service.

Wayne,

Does title insurance automatically come with escrow services, or do you have to specifically request it? I have only done one aircraft deal through a broker with escrow and that one (the SNJ) fell through due to the pre-buy.

What does title insurance do for a case like this? Prevent the previous owner from somehow coming back and trying to reclaim the airplane based on the discrepancy?

 

[poadeleted21]

Wayne,

Does title insurance automatically come with escrow services, or do you have to specifically request it? I have only done one aircraft deal through a broker with escrow and that one (the SNJ) fell through due to the pre-buy.

What does title insurance do for a case like this? Prevent the previous owner from somehow coming back and trying to reclaim the airplane based on the discrepancy?

Not in my recollection, it's been a few months since I did that dance but I think I paid ~$50.00 for the lien search/title insurance before I went to escrow.

 

[midlifeflyer]

Wayne,

Does title insurance automatically come with escrow services, or do you have to specifically request it?

You have to specifically request it. It's exactly like real estate escrow and title services.

Escrow services consist of of the escrow company acting as a neutral party holding all documents and money until certain contingencies take place, at which point they record and pass them out as appropriate.

Title services consist of insurance policies that guarantee that what you bought is what you got and that the only limitations on what you own are ones you agreed to.

The fact that (whether airplanes of real estate) a single company is usually retained to deal with both, doesn't change the fact that they are separate products.

And, btw, the lien/title search typically done at the start of the transaction is not a title policy in either aviation or real estate.