Aircraft Title Searches   

You would not think of purchasing a home until you have the records examined for any possible liens against the property.  Likewise, buying an aircraft should be no different.  It always makes good sense to determine the true status of an aircraft’s records before you buy!

The FAA’s Civil Aviation Registry aircraft records contain all of the ownership and security documents that have been filed with the FAA. They record all acceptable security instruments and, in some states, they are also authorized to record artisan liens (mechanic liens).

A "clear title" is a term commonly used by aircraft title search companies to indicate there are no liens (chattel mortgage, security agreement, tax lien, artisan lien, etc.) in the FAA aircraft records.

An Aircraft Title Search Report can be obtained on your behalf by AirplanesUSA or any aircraft title search company within a day or two. The small cost and effort to obtain this report could very well avoid a huge potential future headache in the future! 

So, here are our recommendations: 

For Aircraft Owners

After having satisfied an aircraft loan, always try to obtain a signed copy of FAA Form AC 8050-41 from your lending institution as proof of payoff.  (Your lender should have automatically received this blank form from the FAA when they filed the lien.  It is to be completed, signed, and sent back to the FAA upon the lien’s satisfaction.)  It would be prudent to make sure that the lending institution forwards the original copy to the FAA and to contact the FAA Aircraft Registry Office a few weeks later to confirm its receipt, regardless of the type of lien. 

For Aircraft Sellers

Sadly, aircraft owners are often unaware that certain "old" liens were never removed from their aircraft’s FAA records until a buyer is actually ready to buy their airplane.  At that point, the potential delay caused by having to research and possibly take steps to remove a lien can be quite lengthy and could very well result in the loss of a buyer.

Do not trust your loan company or a previous owner’s loan company to automatically remove their FAA lien upon the pay-off of a loan!  An advance copy of a Title Search Report should be obtained and checked for any possible inaccuracies whenever deciding to sell your aircraft!

For Aircraft Buyers

An Aircraft Title Search should always be conducted prior to purchasing an aircraft even though aircraft owners listing their airplanes with AirplanesUSA have pre-agreed to deliver their aircraft with a clear title.

Lending institutions routinely post liens against aircraft for collateral. AirplanesUSA and other Escrow-Title handling companies will normally insure that lien balances are always paid first from the proceeds prior to any funds being disbursed elsewhere. 

It is the responsibility of a lien-holder to clear the lien for its client. However, institutions that do not process aircraft loans on a routine basis (i.e., banks) are the worst offenders for improper procedures. Be aware as well that financial institutions tend to sometimes change "hands" and problems can later become difficult to repair!

If there are any liens on your report that are to be cleared up, you should have another Title Search conducted a few months after your purchase to insure that the records at the FAA Aircraft Registry Office have indeed been properly updated.  

There is no substitute for examining an aircraft’s records to secure an ownership history and to determine if there are any outstanding liens or mortgages. Our recommendations should help avoid a delay in registering an aircraft and the headaches that many have suffered because they failed to take this one important step before purchasing their aircraft.

A word of caution:  The FAA can take about 30-45 days to record a lien! Title Search Reports only summarize what is already on record.  Thus, any liens "in progress" can not be detected.  We have seen liens posted after a sale for a seller’s lack of hangar rent payments! Unbeknownst to anyone, this action had been "in progress" just as the aircraft was being sold. The FAA matches a lien to an aircraft’s tail number and does not get involved in any disputes regardless of current aircraft ownership.  Therefore, as a remedy option, we recommend that aircraft buyers purchase low-cost "Aircraft Title Insurance".