Aviation closings are unique in many aspects. No one closing is the same as the next. Whether the plane be brand new, or thirty years old each one is worthy of going through escrow. On this page we will give you a basic introduction to aircraft escrow, and tell you why we think you should use our company to perform one for you.
Why should I use an aircraft escrow company?
Safety, in all aspects, is the best reason. Aircraft escrows afford protection and simplicity to all parties involved. Why each party has a unique set or reasons to use an escrow service, the overall benefit lies equally to everyone. Aviation is a unique field, and that often makes many aspects complicated. Let us help ease the burden!
- Your money stays with an informed neutral party.
- You are assured clear title of the aircraft.
- Paying of liens doesn’t become your concern, your banks concern, or your attorneys concern. We take care of that for you, and have dealt with most any bank that you might encounter and have a relationship with them.
- Transfer of ownership occurs near instantly with our desk at the FAA. This means that a gap doesn’t exist from the time you receive a Bill of Sale to the time it is filed.
- You’re the only buyer. Whether intentionally or accidentally (the latter being hard to believe) sometimes a seller might give more than one person a Bill of Sale.
- The documents are right, first try. You won’t get a reject from the FAA and have to re-file or correct mistakes.
- Speed is on your side. You have to mail documents in, we hand deliver them. Also if you’re in hurry to go somewhere that a pink copy can’t take you, we can expedite getting a hard copy certificate hand deliver to our desk at the FAA.
- If your aircraft is eligible for the IR it makes near necessary to close with an escrow company (see below).
- There are more reasons than this, but the general picture has been painted. The cost is minimal, and the protection immeasurable.
- Contrary to common opinion, you need escrow as much as any other party, maybe more.
- Your funds come to an escrow company, who will ensure they are clear and safe to use. Would you know what money to take? Do you know if a cashiers check can be cancelled? What about a foreign buyers funds? The list goes on here, but the money is what matters most to you, and this is what we do best!
- If your aircraft has a lien on it, then we’ll take care of getting the release held for closing, calculating payoff with your lender, and ensuring title is cleared upon the sale.
- Correct documentation is a key to a good closing, and we’ll make sure it’s all as it should be. You don’t want a buyer coming back later needing things from you that should have already been handled.
- Make sure the documents get filed! You don’t want to hand someone a Bill of Sale and then have them hours later crash your former plane or perform illegal or illicit activities, all the while you have no document filed at the FAA showing an ownership change has occurred.
- The document are right, first try. You won’t get a reject from the FAA and have to re-file or correct mistakes.
- If your aircraft is eligible for the IR, then you should definitely use an escrow company to close (see below).
- If you’re not convinced yet, ask your friends or colleagues, read around online, or think about why ever reputable dealer, lender and manufacturer close through escrow.
- Read all the reasons above and you will see the many benefits given to all parties.
- Your funds are safe, the transaction closes with all payoffs and transfers being simultaneous and controlled by one party.
- You are assured the correct lien position. If you mail a Security Agreement in to the FAA then you risk the chance of another lien arriving before yours!
- Simplified is a great word to describe what happens to a transaction when it goes through escrow, and this is good for everyone.
- You have someone to work with you, consult you, and assist you. Many lenders don’t do a lot of aircraft, and plainly put, could use a little help.
- If the aircraft is IR eligible, then most anyone would say you were crazy if you didn’t use an escrow company, and we’re in the group of most anyone.
- Still not convinced or have questions? Give us a call and we’ll be glad to talk with you.
International Registry and Escrow
Effective March 1st 2006 a new International Registry applies to U.S. registered aircraft. This likely applies to your airplane if it holds eight (8) or more person and crew or your helicopter if it holds five (5) or more persons or crew. It also applies to some engines (regardless of airframe eligibility).
The IR, as it is commonly referred to, adds a great deal of complication to a transaction, but for those of us who are familiar and experienced with it it’s not so bad. Let us make sure all goes as planned and ensure that your part of this issue is handled correctly. Remember that just because one party doesn’t want to use the IR, that doesn’t mean you shouldn’t. Also don’t just believe what someone tells you about it, make sure you get advise from people with real experience. Call us if you have questions about the IR, or why you should use us on your IR closing.