Ask Pete!

by Pete Schoeninger

Q:  I’ve heard of bogus purchase scams where owners have been swindled out of money on car sales with fake cashier’s checks, and am now considering selling my airplane. Any advice?

A:  Be very careful! I would suggest that unless you come up with a buyer that you know, have the sale go through an escrow service. You send a signed bill of sale to the escrow service, and the buyer sends his money there as well. Then the escrow company wires funds to your local bank. When your bank calls to say funds are in, then you can physically release the airplane. The FAA publishes a list of title companies (most of which also do escrow services) at www.faa.gov/licenses_certificates/aircraft_certifician/aircraft_registry/media/8050-55.pdf

Q: I’m selling my airplane, and the prospective purchaser called, saying he found a lien on it. How could that be as I paid cash for it 4 years ago?

A: This is a frequent question and unfortunately a common problem. You should always do a title search before buying an airplane. Of three airplanes I sold, two had old liens still on their FAA record even though the loans had been paid. One was cleared with a couple of phone calls, and one took three weeks, $300 in expenses, and 11 pages of legal documents to clear. The problem is most commonly caused by an airplane owner failing to ensure that a recorded loan is released on appropriate forms and accepted by the FAA. With bank mergers and name changes, getting an old lien released, even though the note has been paid, can be difficult and time consuming. You can find aircraft title companies by doing a web search or email me for recommendations. Expect to pay $50 – $75.

Email your questions to Pete@Flymilwaukee.com


This entry was posted in Ask Pete, Aug/Sept 2013, Columns, Columns and tagged , . Bookmark the permalink.

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