The Aircraft Purchase Agreement (APA) is the most important legal document in your acquisition. It is a binding contract that outlines the rights and responsibilities of both the buyer and the seller. While your aviation attorney should always draft or review the APA, understanding its key elements is crucial.
The Main Components of a Purchase Agreement
- The Parties: Clearly identifies the legal names of the buyer and seller.
- The Aircraft: Provides a detailed description of the asset, including its make, model, serial number, and a list of included equipment.
- Purchase Price and Deposit: States the agreed-upon price and the amount of the refundable deposit that will be held in escrow.
- The Pre-Buy Inspection Contingency: This is the most critical clause. It gives the buyer the right to conduct a thorough pre-buy inspection and to accept or reject the aircraft based on the results. It should clearly define the scope of the inspection and who is responsible for any repair costs.
- Delivery and Acceptance Terms: Defines when and where the final delivery of the aircraft will take place and outlines the conditions for the buyer's final acceptance.
Protect Your Interests
A well-written purchase agreement is your best protection. While we are not attorneys, we can refer you to experienced aviation counsel to ensure your APA is ironclad.
Start Your Acquisition TodayWhy You Need an Aviation Attorney
Using a generic sales contract is a significant risk. An experienced aviation attorney will draft an APA that is specific to aircraft transactions, protecting your interests regarding title, airworthiness, liens, and tax implications. This is a small investment that can save you from major headaches down the road.