The aircraft purchase agreement is the contract that governs your transaction — and its terms directly affect your financing, your inspection rights, and your protection if something goes wrong. This guide covers the key terms buyers should understand. It's not legal advice; use a qualified aviation attorney for your specific deal.
Key takeaways
- Contingencies protect you — inspection and financing contingencies are essential.
- The deposit is typically held in escrow, not paid directly to the seller.
- Delivery conditions define the aircraft's required state at closing.
- Coordinate the agreement with your loan — timelines must align.
Contingencies: Your Key Protections
Two contingencies matter most to a financed buyer. An inspection contingency lets you walk away (or renegotiate) if the pre-buy inspection reveals problems — never waive it to win a deal. A financing contingency protects you if your loan doesn't come through, though it's strongest when you're already pre-qualified, so the seller sees you as credible. Getting pre-qualified before signing makes your financing contingency realistic and your offer stronger.
Deposit, Escrow & Delivery
The buyer typically places a deposit into escrow rather than paying the seller directly — the escrow company holds it and disburses per the agreement. The agreement also defines delivery conditions: the aircraft's required condition at closing (e.g., fresh annual, airworthy, logbooks complete, any agreed discrepancies corrected). Clear delivery terms prevent disputes about what the seller must fix before you take the airplane.
Aligning the Agreement With Your Financing
Your purchase agreement's timelines — inspection period, financing period, and closing date — must align with how long your loan actually takes. If the agreement gives you two weeks but underwriting, inspection, and appraisal need longer, you'll be scrambling. Build in realistic windows, keep your lender and escrow company informed, and make sure the financing contingency and closing date reflect the true timeline. A broker can help you set expectations before you sign.
Rates, terms, and figures in this article are illustrative examples for the 2026 market and are not offers of credit. Jaken Aviation is a licensed aircraft financing brokerage — a division of Jaken Finance Group — and does not make loan decisions. All financing is subject to lender approval. Tax information is general and not a substitute for advice from a qualified CPA.
Frequently Asked Questions
What contingencies should be in an aircraft purchase agreement?
At minimum, an inspection contingency (to protect you if the pre-buy finds problems) and a financing contingency (to protect you if the loan doesn't come through). Being pre-qualified strengthens both.
Where does my deposit go?
Typically into escrow, held by a neutral escrow/title company and disbursed per the agreement — not paid directly to the seller.
What are delivery conditions?
The aircraft's required condition at closing, such as airworthy status, a fresh annual, complete logbooks, and correction of any agreed discrepancies.
Should the agreement match my loan timeline?
Yes. The inspection, financing, and closing windows should reflect how long your loan actually takes, so keep your lender and escrow informed and build in realistic time.
Financing the Purchase?
Get pre-qualified before you sign so your financing contingency is realistic.
Get Pre-Qualified