Indemnify Seller Clause

[GottaFly]

Thanks for all the feedback. Here's an update. I chose not to proceed with the purchase agreement with the seller who required the indemnity clause. Good new is I have signed a purchase agreement on another nearly identical RV12 that has no indemnity clauses.

To be clear, the indemnity clause in the previous purchase agreement stated that I would have to pay to defend the seller from 3rd party suits and if damages were awarded I would pay for those also. Now I know that there are purchase agreements signed that have similar clauses, but I was not willing to take the risk. Especially since there was a fair chance that if there were suits being made, my family would be the ones dealing with it cause I might not be around anymore as a result of the incident causing the suits. As is usual in deals like this, I've learned way more about insurance than I ever really cared to.

Again, thanks for the feedback. As a new RV12 owner, I'll be back looking for more help and hopefully at some point will be able to help others.

Blake

[DaleB]

Originally Posted by GottaFly

To be clear, the indemnity clause in the previous purchase agreement stated that I would have to pay to defend the seller from 3rd party suits and if damages were awarded I would pay for those also. Now I know that there are purchase agreements signed that have similar clauses, but I was not willing to take the risk.

Good call -- I wouldn't have touched that either.

[grubbat]

I?ve heard of LLC purchasing the plane and when a new person was to have the plane, then they buy the LLC and change the address. Prevents a lot of FFA paperwork and terminates liability of previous LLC owner. Of course the builder is still on the hook I guess.

Originally Posted by isosceles

It's just an idea. An LLC purchases the airplane and sings whatever the indemnity agreement the seller wants. After that the LLC sells the airplane to your without any tricky clauses. Now only the LLC is on the hook. Good luck with that.

Technically, it's easier just keep the airplane in the LLC forever, as many owners do, but you will need to pay LLC fees each year

[N804RV]

Originally Posted by isosceles

It's just an idea. An LLC purchases the airplane and sings whatever the indemnity agreement the seller wants. After that the LLC sells the airplane to your without any tricky clauses. Now only the LLC is on the hook. Good luck with that.

Technically, it's easier just keep the airplane in the LLC forever, as many owners do, but you will need to pay LLC fees each year

That just sounds shady. I'd make sure I had a good lawyer that specializes in LLCs.

[Tim Lewis]

Originally Posted by Pilot135pd

I crashed my Seneca into the ocean. Insurance didn?t want to pay because the logbooks showed the transponder?s 24 month inspection was expired, even though they accepted it wasn?t the reason for the crash. Transponder was turned off and I was flying in airspace where it was not required. It took over a year and letters from the FAA for them to finally pay me.

It does happen.

Who was the insurance company? What was the tail number? It?d be interesting to understand this case.

[Dugaru]

This seems to be an example of precisely the sort of insurance industry ticky-tack shenanigans that I thought were largely overblown hearsay....

Having never been wrong before, this entire experience is shocking.

Originally Posted by Tim Lewis

Who was the insurance company? What was the tail number? It?d be interesting to understand this case.