Question on Airplane Purchase

I closed last month. Same as already mentioned. Use an aviation escrow service and meet the seller. Get the airplane and equally important, the log books in hand, then wire the money. It took 15 min from initial go ahead phone call till the seller was notified he had the funds. Both parties walk/fly away with getting what they want and feeling good about it.
 
When I bought my Tiger, I used a title and escrow company I found in OKC via AOPA. Cost was like $200 for the title search and escrow service. Money was placed in the escrow, and we both verified the transaction via email within minutes of each other, and they released the money to the seller. They had all the information they needed to wire the funds to his account. I sent the bill of sale and the signed copy of the registration application to the Escrow company, and they filed all the paperwork with the FAA. Couple of weeks later, I got a new registration from the FAA to replace the temporary one from the sale. Easy peasy.
 
Rcmutz said:
When I bought my Tiger, I used a title and escrow company I found in OKC via AOPA. Cost was like $200 for the title search and escrow service. Money was placed in the escrow, and we both verified the transaction via email within minutes of each other, and they released the money to the seller. They had all the information they needed to wire the funds to his account. I sent the bill of sale and the signed copy of the registration application to the Escrow company, and they filed all the paperwork with the FAA. Couple of weeks later, I got a new registration from the FAA to replace the temporary one from the sale. Easy peasy.
Click to expand...
Very Nice! Do you recall who, out of OKC you used?
 
When I go my first plane it was a pretty simple transaction... but, being close to where the plane was and semi-knowing the owner made it pretty easy too... And this was well before internet and potential scams etc...

Once we agreed on everything, the seller flew the airplane to my airport, I inspected the airplane once more with a check of the Hobbs and Tach, handed him the cashiers instrument, he called the bank to verify it, handed me the keys, the log books, a box of spare parts, a folder with multiple copies of all the FAA required paperwork already nicely typed in, and a release of liability for him... We signed everything on the wing of the plane, jumped in my car and I drove him back to his airport... On the way back to my new plane I hit the post office and dropped the forms off, called my insurance company to get covered, and was good to good the day after they received a faxed copy of the Current Airworthiness Certificate w/new application, Bill of Sale and Aircraft Registration Application.

That said, this is a good topic for me as I am looking at a few of the "keepers" I have in mind that are a distance away... Looks like the escrow may be the way to go on this
 
Cheers,

Use an escrow company and also have them perform a title search on the airplane. That way both parties are assured they are getting what they agreed to ... no suspense, no cheating. Think of the small fee involved as insurance.

Don
 
bradg33 said:
How much are we talking about here? IMHO, escrow is a waste of time and money for "smaller" transactions (anything under $75-100k). Remember, once the money is in the escrow agents hands, you're NOT getting it back unless both sides instruct the escrow agent to release it to you. If there is any dispute, you're going to Court to get your $$ back.

.
Click to expand...
This is 100% wrong on all counts. I've done escrow on 3 aircraft purchases. My 2nd one we found something on pre-buy we didn't like. The owner would not pay. I told him thanks but no thanks. I called the escrow agent and said " I am not buying the plane" within 2 hours my money (100 percent of it) was returned. Period. Did not need the seller's consent. Total BS. You should seriously do some research before you spread this BS.

OP use an escrow. It costs 300 bucks and everyone is covered. If something doesn't float you get your money back without the seller's consent.
 
EminiTrader said:
within 2 hours my money (100 percent of it) was returned.[/B]
Click to expand...
I agree with the majority of your post, but you were fortunate on getting 100% of your money back. Most of the escrow services I've seen keep something like $500 back if you pull out.
 
Fearless Tower said:
I agree with the majority of your post, but you were fortunate on getting 100% of your money back. Most of the escrow services I've seen keep something like $500 back if you pull out.
Click to expand...
That has to be spelled out in the escrow contract that you agree and sign. They just can't arbitrarily keep your money. But if the contract states that they will deduct a fee - then absolutely you signed and agreed to it. Bradg33 makes it sounds like your basically SOL and you lose all your money. If that's the case I need to get into the escrow business. Nothing like free money :)
 
EminiTrader said:
That has to be spelled out in the escrow contract that you agree and sign. They just can't arbitrarily keep your money. But if the contract states that they will deduct a fee - then absolutely you signed and agreed to it. Bradg33 makes it sounds like your basically SOL and you lose all your money. If that's the case I need to get into the escrow business. Nothing like free money :)
Click to expand...
True. You have to read the fine print. In my case, losing $500 to back out of a basket case deal saved me tons in the long run.
 
My sellers used Aero-Space Reports out of OKC. I LOVED working with them. As a first time buyer they couldn't have made it any easier.
 
jpflysdfw said:
Thanks, I was able to get a prebuy done, send off and receive an oil analysis and just received the CD from FAA yesterday with all the registration and AW records. Now it primary down to the final transaction to transfer dollars and the airplane. I guess I hadn't considered doing it over the phone, thanks for the quick and helpful.
Click to expand...

Bank wires don't always go through instantly so you might be standing around for a day before the funds hit. Use an escrow service. That's what they are there for.
 
Glen R said:
Bank wires don't always go through instantly so you might be standing around for a day before the funds hit. Use an escrow service. That's what they are there for.
Click to expand...

There are electronic funds transfers and there are real wires. They cost some money, but they go right through in my experience.


Sent from my iPhone using Tapatalk
 
NealRomeoGolf said:
My sellers used Aero-Space Reports out of OKC. I LOVED working with them. As a first time buyer they couldn't have made it any easier.
Click to expand...
Thanks, I've now received a couple of positive votes for Aero-Space, sounds like a very practical option! Thanks to all for the great recommendations and feedback.
 
EminiTrader said:
This is 100% wrong on all counts. I've done escrow on 3 aircraft purchases. My 2nd one we found something on pre-buy we didn't like. The owner would not pay. I told him thanks but no thanks. I called the escrow agent and said " I am not buying the plane" within 2 hours my money (100 percent of it) was returned. Period. Did not need the seller's consent. Total BS. You should seriously do some research before you spread this BS.

OP use an escrow. It costs 300 bucks and everyone is covered. If something doesn't float you get your money back without the seller's consent.
Click to expand...

Believe what you like, but many escrow agreements (the devil is in the details) provide that the escrow company will not release the money without the consent of both sides (or at least the non-objection of the other side). I've been personally involved in an escrow dispute in an airplane purchase before. The company simply refused to release the money until both sides agreed. We eventually came to an agreement and submitted a joint escrow instruction letter, which got the funds released. But if there's a dispute, the escrow company is going to hold the funds until the parties sort it out, or as a last resort file an impleader action in the local court and let a judge sort it out. The escrow company isn't going to play judge, as there just puts too much liability on them. I can almost guarantee that in your circumstance had the seller called the escrow company and said "don't give him back his money, he's in breach, etc." things would have been different.
 
bradg33 said:
Believe what you like, but many escrow agreements (the devil is in the details) provide that the escrow company will not release the money without the consent of both sides (or at least the non-objection of the other side). I've been personally involved in an escrow dispute in an airplane purchase before. The company simply refused to release the money until both sides agreed. We eventually came to an agreement and submitted a joint escrow instruction letter, which got the funds released. But if there's a dispute, the escrow company is going to hold the funds until the parties sort it out, or as a last resort file an impleader action in the local court and let a judge sort it out. The escrow company isn't going to play judge, as there just puts too much liability on them. I can almost guarantee that in your circumstance had the seller called the escrow company and said "don't give him back his money, he's in breach, etc." things would have been different.
Click to expand...

If you have a seller who is inclined to behave that way, you risk having problems whether you use an escrow agency or not. Good luck getting your certified cheque back in that circumstance.
 
G-Man said:
This has fantastic potential.
Cessna 150? A nephew ought to suffice.
Bonanza? A beloved spouse.
Catalina PBY? Only the favorite pet is valuable enough!
Click to expand...

Cirrus? A turtle.
 
GRG55 said:
If you have a seller who is inclined to behave that way, you risk having problems whether you use an escrow agency or not. Good luck getting your certified cheque back in that circumstance.
Click to expand...

The advantage with a certified check is that the funds do not leave your hands at all until you're satisfied that all is well (the same time at which you'd call the escrow company and provide an instruction to release). With escrow, you have to give the money to the escrow company in advance (it's now out of your direct and complete control). If the **** hits the fan at the closing table, you may end up fighting to get your money back from escrow, even if you're the one in the right. My point isn't that you should never use escrow; it's that it comes with certain risks, costs and hassles that, IMHO, aren't worth it on smaller and simpler transactions.
 
Perhaps I got lucky. I gave the guy a personal check for the refundable deposit (10%), and then after the pre-buy inspection I flew out with a bank check for the 90%. The seller and I flew her from Phoenix to Fort Worth together. He stayed at my house for the night, and I gave him a commercial ticket home the next day (not United). He was happily surprised I sent him home First Class.

IMHO, by the time you're putting out the bulk of the cash the chances of getting cheated are probably very low. You've seen it IS a plane, it IS his plane, you're satisfied with the condition of the plane.
 
jpflysdfw said:
Thanks Anthony, I'm embarrassed to admit, I hadn't thought of that. I see your a Grumman guy....I'll soon be picking up a Tiger. Any recommendations regarding who you used for title insurance?
Click to expand...

It has been so long since I bought my Tiger, I forget who I used for title insurance, and there was a very small lien on the plane that was satisfied. AOPA, or The Grumman Gang/AYA could give you some tips. You made a wise choice with the Tiger, and I'm sure you know their minor quirks, and what to look for. Excellent choice! :)
 
You must log in or register to reply here.
Back
Top