When you buy an aircraft in the United States, ownership is recorded with the FAA Aircraft Registry, and if you finance it, the lender's lien is recorded there too. Understanding the registration process helps a purchase close smoothly. Here's a buyer's overview — not legal advice, but a practical map of how it works.
Key takeaways
- The FAA Registry (in Oklahoma City) records aircraft ownership and liens.
- Eligibility rules apply — U.S. citizenship or qualifying entity status.
- Escrow typically handles the filing as part of closing.
- A financed aircraft has the lender's lien recorded at closing, released at payoff.
Who Can Register a U.S. Aircraft
To register an aircraft on the U.S. (N-number) registry, the owner generally must be a U.S. citizen, a permanent resident, or a qualifying U.S. entity (with additional rules for entities and non-citizen ownership through structures like owner trusts). International buyers financing a U.S.-registered aircraft face additional considerations — see our guidance on international-buyer financing. If you're unsure of your eligibility, your escrow/title company and a qualified aviation attorney can confirm the right approach.
The Paperwork & the Lien
A typical financed purchase involves an aircraft bill of sale, an application for registration, and — because the loan is secured — a security agreement that the lender records as a lien with the FAA Registry. The recorded lien protects the lender's interest and is released when the loan is paid off. Clear title (no undisclosed liens) is verified before closing, which is one reason transactions run through a specialized escrow and title company.
Escrow's Role & Timing
Aircraft transactions almost always close through an escrow and title company, which verifies clear title, holds funds, coordinates the FAA filings, and disburses at closing — protecting buyer, seller, and lender. Registration processing has its own timeline at the FAA Registry, and while the aircraft can generally be operated on a temporary basis during processing, your escrow company will advise on specifics. Coordinating the loan closing with escrow keeps everything aligned.
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
Who records the FAA lien on a financed aircraft?
The lender's security interest is recorded as a lien with the FAA Aircraft Registry, typically handled through the escrow/title company at closing, and released when the loan is paid off.
Can a non-U.S. citizen register a U.S. aircraft?
There are eligibility rules; non-citizens sometimes use qualifying structures such as owner trusts. International buyers financing a U.S.-registered aircraft should confirm the approach with escrow and an aviation attorney.
Does escrow handle FAA registration?
Escrow and title companies typically coordinate the FAA filings as part of closing, verify clear title, and disburse funds — protecting all parties.
Is registration the same as airworthiness?
No. Registration records ownership and the lien; airworthiness is a separate matter of the aircraft's certification and maintenance status.
Financing Your Purchase?
Get pre-qualified and we'll coordinate with escrow so registration and your loan close smoothly.
Get Pre-Qualified