Jaken Aviation

Aircraft Title Search and Ownership Transfer Complete Guide

Proper aircraft title search and ownership transfer protects buyers from liens, ownership disputes, and legal issues. Understanding the FAA aircraft registration process ensures smooth, legal ownership transfer.

Aircraft Title Search Process

What is Aircraft Title Search:

  • Review of FAA records for ownership history
  • Lien and encumbrance verification
  • Confirms seller's legal right to sell
  • Identifies any claims against aircraft
  • Essential before purchase commitment

Title Search Services:

  • Aircraft title companies: $200-$400 comprehensive search
  • Attorney services: $300-$600 with legal review
  • DIY FAA search: Free but time-consuming, no guarantee
  • Escrow company included: Often part of closing services

FAA Aircraft Registry

Accessing FAA Records:

  • FAA Registry website (free public access)
  • Search by N-number or serial number
  • Shows current registration status
  • Historical ownership data
  • Lien recordings (if filed)

Information Available:

  • Current registered owner
  • Aircraft make, model, serial number
  • Registration expiration date
  • Airworthiness certificate status
  • Recorded liens and encumbrances

Common Title Issues

Liens and Encumbrances:

  • Bank liens: Unpaid loans must be cleared at closing
  • Mechanic's liens: Unpaid maintenance bills
  • Tax liens: IRS or state tax claims
  • Judgment liens: Court-ordered claims
  • All must be satisfied before clear title transfer

Ownership Disputes:

  • Seller doesn't have clear title
  • Estate/probate issues
  • Partnership disputes
  • Divorce proceedings affecting ownership
  • Corporate ownership complications

Bill of Sale Requirements

FAA Bill of Sale (AC Form 8050-2):

  • Legal transfer document required by FAA
  • Must include: aircraft description, N-number, serial number
  • Buyer and seller information
  • Sale price or gift statement
  • Notarized signatures required
  • Submit to FAA within 14 days

Additional Documentation:

  • Purchase agreement
  • Lien release letters
  • Certificate of airworthiness
  • Current registration certificate
  • Weight and balance data

FAA Registration Process

New Registration Steps:

  • Step 1: Complete AC Form 8050-1 (Aircraft Registration Application)
  • Step 2: Submit bill of sale (AC Form 8050-2)
  • Step 3: Pay $5 registration fee
  • Step 4: Submit to FAA Aircraft Registry in Oklahoma City
  • Step 5: Receive temporary registration (pink slip)
  • Step 6: Permanent registration arrives 4-8 weeks

Registration Requirements:

  • U.S. citizen or permanent resident
  • Corporation registered in U.S.
  • Trust with U.S. beneficiaries
  • Foreign nationals cannot register aircraft

Escrow Services

Why Use Escrow:

  • Protects both buyer and seller
  • Ensures funds available before title transfer
  • Coordinates lien payoffs
  • Handles FAA paperwork
  • Manages inspection contingencies

Escrow Process:

  • Buyer deposits funds with escrow agent
  • Seller provides clear title documentation
  • Pre-buy inspection completed
  • All contingencies satisfied
  • Escrow releases funds to seller
  • Title transfers to buyer

Escrow Costs:

  • $500-$1,500 depending on transaction complexity
  • Typically split between buyer and seller
  • Includes title search often
  • Worth cost for protection provided

Trust and LLC Registration

Trust Ownership Benefits:

  • Privacy (trustee name on registration, not owner)
  • Estate planning advantages
  • Avoid probate on owner death
  • Asset protection benefits

LLC Ownership:

  • Liability protection for owners
  • Can have multiple members
  • Business expense deductions
  • Privacy if state allows
  • Must be U.S.-registered LLC

International Considerations

Importing Aircraft:

  • De-register from foreign country
  • Obtain FAA airworthiness certificate
  • Convert to U.S. registration
  • Pay import duties if applicable
  • Complex process requiring expert help

Finance Your Aircraft Purchase with Confidence

Jaken Aviation coordinates with title companies and escrow services to ensure smooth ownership transfer and clear title for all financed aircraft.

Get Pre-Qualified

Frequently Asked Questions

How long does aircraft title transfer take?

Complete process 6-10 weeks. Immediate: Pink slip temporary registration valid 120 days. Permanent registration arrives 4-8 weeks from FAA. Title search 3-5 days. Escrow closing 1-2 weeks after inspection. Plan 2-3 months total for complex transactions.

What is aircraft title search cost?

Professional title search $200-$400 from title company. Attorney title search with legal review $300-$600. Often included in escrow services ($500-$1,500 total). DIY FAA search free but no guarantee. Title insurance available $300-$800 for additional protection.

Can I fly aircraft before FAA registration complete?

Yes, with pink slip temporary registration issued at closing. Valid 120 days while permanent registration processed. Must carry pink slip, bill of sale, and airworthiness certificate. Cannot fly without temporary registration—illegal and insurance won't cover.

What happens if aircraft has lien?

Lien must be satisfied at closing before title transfer. Escrow coordinates payoff with lender. Lien holder provides release letter. FAA records lien release. Buyer receives clear title. Never accept aircraft with outstanding liens—serious legal/financial risk.

Should I use escrow for aircraft purchase?

Yes, highly recommended for transactions over $50,000. Escrow protects both parties, ensures clear title, coordinates lien payoffs, manages inspection contingencies, handles FAA paperwork. Cost $500-$1,500 minimal compared to protection provided. Required by most lenders.