sale paperwork, carrying paper

[tchevy56]

Hi guys,

Have any of you sold an aircraft but loaned part of the sale price to the new buyer and been paid off in installments? In other words executing a "CONTRACT FOR CONDITIONAL SALE" as the seller I think? My lawyer is not an airplane guy and is looking for some samples. We're in Airizona.

He has found conflicting guidance about doing the FAA Form 8050-2 "bill of sale"

A little help please spoon feeding this guy cuz at $300/hr his learning curve needs to be steeper. thanks

Chevy

[David Paule]

Is there a reason the buyer can't get an airplane loan from a lender?

Dave

[airguy]

Originally Posted by David Paule

Is there a reason the buyer can't get an airplane loan from a lender?

Dave

That's where my mind was going - this has bad written all over it, IMHO.

[Jesse]

It would be 2 separate documents, a bill of sale and a loan agreement. Then you would file a lien on the plane until the loan is paid off.

[vernon smith]

This is a common problem with assets that do not have a title or deed associated with them, usually provided by a state so said state can be sure they get their sales tax. It's easy to put a lien on a deed (mortgage) or on a title (vehicle loan). I fear you will be effectively giving the buyer a personal loan, the lien on the airplane will be difficult to enforce, particularly if the plane is located in a different state.

Your best course of action would be to place a lien on his house which will still be second in line to whoever has the mortgage on the house but better than a personal loan. A further complication will probably be the joint ownership issue with his wife assuming there is one. It's hard to take possession of half a house.

This is not legal advise but I've been in the auto/truck business for fifty years and have some familiarity with the shortcomings of the systems.

[RobinHou]

Jesse is correct. Ask you attorney to research here:

https://www.faa.gov/licenses_certifi...aircraft_lien/

[tchevy56]

thanks for the link