Aircraft Damage History Disclosure: Legal Requirements and Value Impact

Proper aircraft damage history disclosure protects sellers legally and maintains buyer trust. Understanding airplane accident disclosure requirements and value impacts ensures ethical, legal transactions.

Types of Reportable Damage

Major Damage (Always Disclose):

• Gear-up landings: 20-40% value reduction
• Propeller strikes: 15-30% reduction (requires teardown)
• Hard landings: Structural damage concerns
• Ground loops: Wing/fuselage damage
• Engine failures: Documented repairs required
• Nose-over accidents: Firewall/propeller damage

Moderate Damage (Should Disclose):

• Hangar rash requiring sheet metal work
• Minor runway excursions
• Tail strikes on landing
• Bird strikes causing damage
• Hail damage

Minor Incidents (Judgment Call):

• Paint scratches from hangar door
• Wingtip scrapes (cosmetic only)
• Minor corrosion repair
• Small dings and dents

Legal Disclosure Requirements

Federal Requirements:

• NTSB reporting for substantial damage
• FAA Form 337 for major repairs/alterations
• Logbook documentation required
• Fraud penalties for non-disclosure
• Civil and criminal liability possible

State Laws:

• Vary by state (some stricter than federal)
• Material defect disclosure requirements
• As-is sales still require honesty
• Buyer can sue for fraudulent concealment

Value Impact by Damage Type

Gear-Up Landing:

• Value reduction: 20-40% permanently
• Repair costs: $50,000-$150,000
• Insurance impact: Higher premiums long-term
• Resale challenges: Limited buyer pool
• Proper disclosure: Essential for liability protection

Propeller Strike:

• Value reduction: 15-30%
• Engine teardown required: $15,000-$35,000
• Must document: Complete inspection and repairs
• FAA scrutiny: Form 337 required

Substantial Corrosion:

• Value reduction: 30-50% if severe
• Repair costs: $20,000-$100,000+
• May be uneconomical: Total aircraft loss

Disclosure Best Practices

Written Documentation:

• Provide complete written disclosure statement
• List all known incidents chronologically
• Include repair invoices and receipts
• Provide inspection reports post-repair
• Photographs before and after repairs

What to Include:

• Date of incident
• Description of damage
• Cause if known
• Repairs performed
• A&P signatures and certificates
• Return-to-service documentation
• Insurance claim details

Buyer Due Diligence

Research Methods:

• NTSB database search: Free online access
• FAA accident/incident reports: Public records
• FAA Form 337 search: Major repairs documented
• Insurance claims check: Through underwriters
• Pre-buy inspection: Hidden damage detection

Red Flags:

• Seller reluctant to discuss history
• Vague or incomplete logbook entries
• Fresh paint hiding repairs
• Mismatched serial numbers
• Unusual insurance history

Selling with Damage History

Pricing Strategy:

• Research comparable damaged aircraft sales
• Reduce price 20-50% depending on severity
• Emphasize quality of repairs
• Provide complete documentation
• Consider selling to rebuilders if severe

Marketing Approach:

• Full disclosure in listings upfront
• Detail professional repair quality
• Highlight post-repair flying hours
• Provide independent inspection reports
• Target knowledgeable buyers

Insurance Implications

Impact on Coverage:

• Higher premiums after major damage
• Some insurers won't cover gear-up history
• Must disclose to insurer
• Non-disclosure voids policy
• Rate increases: 10-50% depending on incident

Legal Consequences of Non-Disclosure

Civil Liability:

• Buyer can sue for damages
• Rescission of sale possible
• Attorney fees and costs
• Fraud damages (2-3x actual damages)
• Reputational damage

Criminal Penalties:

• Fraud charges possible
• FAA certificate action
• Fines up to $250,000
• Imprisonment in extreme cases

Frequently Asked Questions

Do I have to disclose aircraft damage history?

Yes, legally and ethically required to disclose all material damage. Federal and state laws mandate disclosure. Non-disclosure constitutes fraud, creating civil liability and potential criminal charges. Always disclose major incidents—legal protection and ethical obligation.

How much does damage history reduce aircraft value?

Gear-up landing: 20-40% permanent reduction. Propeller strike: 15-30%. Substantial corrosion: 30-50%. Minor incidents: 5-15%. Quality of repairs, documentation, and time since incident all factor. Complete disclosure with excellent repair records minimizes impact.

Can I sell aircraft "as-is" without disclosing damage?

No. "As-is" doesn't eliminate disclosure obligations. Must still disclose known material defects including damage history. Fraudulent concealment illegal regardless of as-is language. Courts consistently rule against sellers hiding damage. Full disclosure legally required.

How to check aircraft damage history before buying?

NTSB database search (free), FAA accident/incident reports, FAA Form 337 search for major repairs, insurance claim check through underwriters, comprehensive pre-buy inspection, logbook review for repair entries. Professional aircraft title search $200-$400 includes damage history research.

Does insurance claim show up on aircraft history?

Yes, insurance underwriters maintain claim databases shared industry-wide. Future insurers see all claims. Large claims flag aircraft for higher premiums or coverage denial. Cannot hide insurance claims—always disclosed when insuring aircraft. Affects insurability 5-10+ years.