How to sell a Mooney to a relative using credit

[Skybrd]

I have questions on how to do the FAA paperwork on selling a Mooney to a relative and still hold legal interest until it's fully paid for. I remember that they use liens on car sales but not sure what to do on airplanes.  The FAA send me some registration forms but not sure what to do. Have any of you did this before and have suggestions. I really don't want to debate on ethics of selling to a relative or trust issues.  Thank you for your responses.

[dcrogers11]

Here's the FAA website for what is going to happen on their level.  Each individual state has it's own rules for filing iiens as well.  

http://www.faa.gov/licenses_certificates/aircraft_certification/aircraft_registry/clear_titles/

When I originally borrowed money for my plane, my local banker knew what to do with regards to the FAA documentation and took care of it.  If you have a banker that you deal with locally, I would ask him for help.  

[carusoam]

Skybrd,

 

Thoughts on selling machinery...

 

If you sell someone the plane,  they get it with the registration signed over to them. You get a note that says they owe you the money.  In the note you can outline the payments and what happens in the event of failure to pay.

 

Otherwise, you stay the registered owner until enough payments are made to satisfy your requirements.  This would be similar to "rent to own.". This is also typical of a machine lease.  Make all the payments then finish with a final buyout.

 

As owner, you may have some level responsibility for insurance and accidents by your partner.

 

If you are not in the family loan business, yelp your buyer get financing and let them be responsible for their outcomes.

 

Your third option seems like taking on a partner where you will share ownership.

 

This is from experience of buying, selling and leasing machines.  Which ever way you go, write it down, consult a professional.

 

Best regards,

 

-a-

[Skybrd]

Thanks for the suggestions.

[N601RX]

Quote: Skybrd

I have questions on how to do the FAA paperwork on selling a Mooney to a relative and still hold legal interest until it's fully paid for. I remember that they use liens on car sales but not sure what to do on airplanes.  The FAA send me some registration forms but not sure what to do. Have any of you did this before and have suggestions. I really don't want to debate on ethics of selling to a relative or trust issues.  Thank you for your responses.

[jetdriven]

and that it is to be insured for XXX hull and XXX liability, you are a named insured etc etc