Escrow and title search

[Ron McBride]

My dad paid a loan off on his 310 to Crocker Bank.  They never filed the release.  Bank was merged several times.  New bank finally said, it is not an active receivable and signed it off.  
 

[midlifeflyer]

8 hours ago, Ron McBride said:

My dad paid a loan off on his 310 to Crocker Bank.  They never filed the release.  Bank was merged several times.  New bank finally said, it is not an active receivable and signed it off.  
 

Similar story but with a twist. The original bank was in the process of changing its name when it made the loan. They used the loan forms with the new name but ended up never legally changing it. Fast forward a few mergers and acquisitions. Initial response from the current bank: "we don't know that's us, so we can't release it."

[NJMac]

Interesting aside from this is my current Moonship.  It's a 1964 and I've been told there was no title for it back then.  Should I have one? 

[FJC]

An obvious reason to use escrow service is: what happens if the plane owner manages to collect funds and/or provides multiple bill of sales or collects large deposits from multiple parties? Purchase agreement should spell it all out but if the person is corrupt, contract enforcement will lead to empty pockets. I like to think our community as honorable than most and have plenty of examples to say it is. It is very much the same reason property deeds are recorded and processed by title/escrow companies...I'd never purchase home/land w/o a title company involved. In many cases, the fee is split evenly (it protects the seller too).

If you use reputable escrow company for the purchase, you can relax and know that you will obtain clear title (or escrow company will release funds back to you) and it is just one less headache to be concerned over as there are others like the inspection that will make your head spin.

[GeeBee]

22 hours ago, Ron McBride said:

My dad paid a loan off on his 310 to Crocker Bank.  They never filed the release.  Bank was merged several times.  New bank finally said, it is not an active receivable and signed it off.  
 

You should always demand a UCC conformal release of lien from the lender when you pay off. I keep all mine, for everything.

 

[danad]

I used AIC and it was great handling and communication every step of the way. Use a contract template (aopa, nbaa, etc) and read it through as the good ones protect buyer and seller.

Wiring money I found to be error prone so check with both banks (send and receive) to make sure you’ve got their forms filled out right. Otherwise, you will be trying to reel the money back in and that is difficult at best, and gone, at worst.