Walk me through the purchase process?

[ragedracer1977]

I think I have a decent grasp, but it's the details I'm worried about.  I think there's more to it than buying a car... 

So, I look at a plane.  I like it.  The seller and I sign a purchase contract.  I give them a deposit.  Then the plane goes to pre-buy.  It passes to my satisfaction.  Then what?  I just hand them another stack of cash and they fill out a bill of sale?  I keep reading about title and escrow services and such, but I have no idea how that works, if it even needs to be done. 

I just want to make sure I have my ducks in a row.

[gsengle]

Yes you need a title and faa maintenance records search, try AOPA. But yes it can be as simple as handing over plane with a signature and keys for a bank check... some do escrow some don't. The more $$$ the more likely escrow. Aopa had checklists for the entire process...

 

 

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[DonMuncy]

You have the basics down. The transfer of money and the bill of sale is the most important part. But making sure the title is clear and no outstanding liens is important. This is where escrow services get important. I would recommend them for that reason.

[ragedracer1977]

OK, so how do I go about the escrow thing?  I read the AOPA checklists and it said "put the title and paperwork into escrow".  I literally have no idea how to do that.  I've bought and sold cars, houses, etc and with the houses had to deal with a title company, but that was just to sign paperwork.  I didn't do any of the leg work.  

[Steve W]

I had to use an escrow service(in my case aerospacereports.com, call them they're fairly friendly) since I was financing, but it was nice to let them handle all the tiny details like what to send where, etc.

In reality, given the choice between buying a house, a used car or a plane. I'll choose going to buy a house, followed by a car, then making several trips to the dentist and it still doesn't approach the same level of suck as buying a plane.

 

 

Edited May 18, 2017 by Steve W

[DonMuncy]

If I am not mistaken, AOPA has an escrow service. Call and ask them.

Any lawyer and a bank can do an escrow deal, but it is much, much easier to use a service who is familiar with them.

[ragedracer1977]

I'll call AOPA tomorrow.  This will be a cash deal, no financing, so I wasn't really sure who to even ask.  

[gsengle]

It's pretty easy, and in my experience AOPA services (insurance, escrow and title search) have all been easy to work with...


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[Yetti]

If you have done the FAA search and know the title history and it looks clean, and a person to person transaction then an escrow may not be necessary.   Wire transfer to their account,

Don't forget to arrange the insurance for the trip home if that is how you roll.  I kept it with the agent the people before me had it.  I think it saved me some dollars.

Getting the plane home is more of an adventure if there not a commercial airport near by. Just look at it all as a big adventure.

When you start saying "this or that weather should work out"  Stop and replan

[ragedracer1977]

FAA search?

[Rmag]

I've used this company, they have offices right near the FAA in Oklahoma.  They also offer title service, etc.  http://insuredaircraft.com/

[gsengle]

FAA search?

The title registry is at the FAA in Oklahoma City...


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[ragedracer1977]

OK, but what search?

[Steve W]

The FAA records liens on aircraft as well as registration. A title search is just like you'd do for a house to make sure it's unencumbered and the person selling you the plane is the one that owns the plane.

[ragedracer1977]

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

[toto]

The records you'll get from Aero-Space Reports are identical to what you'll get from FAA, but using Aero-Space might save you some time. They have a package for AOPA members that covers much of what you'd worry about.

https://www.aerospacereports.com/services/aopa-title-search-package-95

If you end up using Aero-Space for title and escrow, they'll do some handholding and provide some peace of mind.

But even if you don't use them for anything else, the records search is probably well worth the $95. You can't get much in aviation for 0.095 AMU

They'll also send you the results electronically within a few hours. Compare with FAA, where you have to wait for USPS mailing (even when the records come on a CD).

[ragedracer1977]

Ahh, so I did order a CD for the plane I'm looking at.  Is that the same info?  And, if not, when should I initiate the title search?  After the purchase contract is signed?

[gsengle]

Depends on what's on the CD, does it include ownership records and liens?

No you can't really do the search yourself, it's in paper files in Oklahoma City... well I guess you could fly out there...


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[ragedracer1977]

I don't know, I haven't received the CD yet.   How can Aero-Space get the info in a few hours if it's all on paper files in OKC?

[Steve W]

They're just down the street in OKC too.

[gsengle]

Maybe they've been digitized since last I did it. Or maybe they go right over to the FAA....


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[gsengle]

Which search did you buy?

https://www.aerospacereports.com/services


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[ragedracer1977]

Roger.  I just went ahead and ordered a report. 

[jaylw314]

Escrow services are good when you're putting down a deposit--they'll hang on to the deposit until the transaction is completed.  That way you'll know you get your deposit back without undue delay if there is some kind of disagreement.  Much safer than handing the deposit to the seller.  For that matter, it means you don't have to carry around a huge cashier's check around.

Aerospace reports has a escrow/title search package.  The peace of mind is well worth the cost.

3 hours ago, Steve W said:

In reality, given the choice between buying a house, a used car or a plane. I'll choose going to buy a house, followed by a car, then making several trips to the dentist and it still doesn't approach the same level of suck as buying a plane.

That was painfully funny because it's so freaking true.

[MBDiagMan]

My first plane I used AOPA and they did fine, but it was expen$ive.  My Mooney went through a title company in OKC.  Even though the Mooney cost twice as much as my first plane, the independent title company charged a lot less.

I looked up their name for you.  It was Aerotitle in OKC.  I can recommend them without reservation.