Walk me through the purchase process?

[peevee]

AOPA endorses aerospace reports, they charge about $700 with an AOPA discount to do the title search and escrow and everything. They make everything really easy, you wire them the money, seller sends them a bill of sale, when you give the go-ahead they wire the money to seller and file the registration. Honestly there's no reason not to use them.

[1964-M20E]

9 hours ago, ragedracer1977 said:

OK, is that something I can do myself or do I have to hire someone to do it?  

you can request the full registration history and all 337s filed with the FAA for any tail number aircraft directly from the FAA they will send you an CD in a week or two.  I'm not sure the cost and I think you can get it expedited for an extra fee.

 

I was just looking on the FAA site they may not offer this anymore.  I thought I did this on several planes I was looking at before I purchased them but that was at least 4 years ago.

 

 

 

[carusoam]

In the end you are looking for protection from all the small details that have broken up other deals...

1) A small deposit called earnest money can be used to reserve the plane for sale.

2) A purchase agreement can be used to explain the steps you want take, so the seller is on board with you. Include a time frame that everything will take. The PPI and how it works is pretty important.

3) The PPI fill find AW issues and non AW issues.  The PA should include what to do when these are encountered.

4) title and lien searches are important. The history of many Mooney ownerships had been disrupted by Mitsubishi finance who found a way to lose a lot of paperwork over the years.

5) the FAA has instructions on how to update the registration.  It is on the registration paperwork.

6) insurance is key. Make sure you have it. A simple prop strike can be expensive...

7) Transition training and delivery flight is great for people that don't fly small planes for a living...

8) AOPA is helpful with a list of things to cover for this...

Just a few ideas I remember from doing this years ago...

Best regards,

-a-

[Bob - S50]

And don't forget what you have to do AFTER you have the plane.  You'll need to register the plane with the FAA.  And most likely you will need to register it with the state too.  And of course, depending on your state you may have to pay sales (or in Washington state, Use) tax before you can register it.  Plus, if the plane has one of the newer 406 ELT's you'll want to change the registration on the ELT as well.

[peevee]

Ugh, the use tax is a big one. If the plane is on an LLC see if you can buy the LLC and save the money.

[mpg]

50 minutes ago, Bob - S50 said:

And don't forget what you have to do AFTER you have the plane.  You'll need to register the plane with the FAA.  And most likely you will need to register it with the state too.  And of course, depending on your state you may have to pay sales (or in Washington state, Use) tax before you can register it.  Plus, if the plane has one of the newer 406 ELT's you'll want to change the registration on the ELT as well.

well,,,  tell me more please.

I just drove to idaho and bought a cherokee,,  the plane is still there, 

but the faa says it is registered to me, at my washington address.

it has the old style elt.

I Hate Taxes!!!

[peevee]

4 minutes ago, mpg said:

well,,,  tell me more please.

I just drove to idaho and bought a cherokee,,  the plane is still there, 

but the faa says it is registered to me, at my washington address.

it has the old style elt.

I Hate Taxes!!!

they'll find you. In CO they're quite aggressive in tracking down planes moved into the state. They watch for new registrations, case airports, and watch flight trackers. Can't speak for WA but here the use tax rate is the same as the state sales tax. I just had to file a form and pay several thousand

[smccray]

1 hour ago, Bob - S50 said:

 Plus, if the plane has one of the newer 406 ELT's you'll want to change the registration on the ELT as well.

Don't forget this.  I've owned my plane for 5 years now- last year the ELT went off in my hangar (low batteries) and search and rescue called the former owner.  I didn't know I needed to do this!

[gsxrpilot]

I wouldn't bother with escrow on a sub $50K purchase. The deposit of about $5K should hold the plane through the pre-buy. Do a title search, I paid AOPA to do it, took two days. With a clear title and pre-buy good, next steps.

Call your insurance company and bind coverage for the plane (this is not required unlike with a car)

Download and print a couple copies of AC form 8050-1 from the FAA.gov site.

Download and print a couple copies of AC form 8050-2 from the FAA.gov site as well.

Hand over the funds. I did this via wire to the sellers bank account.

Fill out all forms with seller signing and printing name in the appropriate places on both forms. 

You'll send original signed copies to the FAA along with $5. Keep a copy of 8050-1 in the airplane as your temporary registration. The seller should keep the current registration card with their name on it.

Take the keys, fuel it up, fly it home.

 

[ragedracer1977]

I received the info from aerospace reports. Title is unencumbered.  Registration current, etc. A big pile of 337's.  

[Guest]

We always suggest using a title company and having the buyer and seller split the expense.  For a few hinds each they do all the work and protect both parties.  Regardless of the planes value, an undisclosed lien would be an unwelcome surprise.

Clarence

[Bob - S50]

11 hours ago, mpg said:

well,,,  tell me more please.

I just drove to idaho and bought a cherokee,,  the plane is still there, 

but the faa says it is registered to me, at my washington address.

it has the old style elt.

I Hate Taxes!!!

In the state of Washington, I believe Use tax is 6.5%.  You will not be able to register the plane in the state until you can show that you have paid the tax.

[Wakeup]

Airport managers have to provide information on who is renting there hangars for taxes.   They will find you.  

[ragedracer1977]

Fortunately, there is no use tax on items purchased via private party sales in Arizona.  There is a registration fee, which is pretty minimal.  Under an AMU, I think

[peevee]

along the lines of the use tax, you need to make sure the state you buy in is a "fly away" state. Some states charge you sales tax if you buy the plane there, I believe most are flyaway states and if you're leaving with the plane they don't. I guess if it's a private party sale it might not matter.

 

CO has no state registration, just the use tax but those buggers find you.

 

You've got 60 days in AZ to register-

https://www.azdot.gov/mvd/professional-services/aircraft-services/registration/new-aircraft-entrants-into-arizona

 

The fees are very, very low

https://www.azdot.gov/mvd/professional-services/aircraft-services/valuation-and-tax

[ragedracer1977]

The plane I'm looking at is in California, which is listed as a fly-away state.  Supposedly, though, I can't fly it into or over California for 12 months after the purchase.

[peevee]

2 minutes ago, ragedracer1977 said:

The plane I'm looking at is in California, which is listed as a fly-away state.  Supposedly, though, I can't fly it into or over California for 12 months after the purchase.

I mean, even if it wasn't a fly away state just have him meet you next door to make the sale and note it somehow maybe.

[ragedracer1977]

Just now, peevee said:

I mean, even if it wasn't a fly away state just have him meet you next door to make the sale and note it somehow maybe.

So we "complete" the sale in Arizona or Oregon or something?

[peevee]

4 hours ago, ragedracer1977 said:

So we "complete" the sale in Arizona or Oregon or something?

If you had to I think that works, but sounds like it's unnecessary in this case. It's not something I've had to deal with

[carusoam]

This is probably one of those questions to ask one's tax preparer too.  Each state has some complex rules...

In NJ, we sold one plane and about 9 months later bought another.  Sales tax was based on the difference in value of the two planes...  the sales were independent of each other.  The lime limit had to be within a year of each other.

No way to guess, but my accountant was pretty helpful at getting the right answer.

Best regards,

-a-

Edited May 21, 2017 by carusoam