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Aircraft Trade and Escrow

T

Tcheairs

Well Known Member
Patron
I have a verbal agreement to trade my RV7A for a RV10. I will owe a balance (substantial) between the agreed value of my RV7 and the "seller's " price for the RV10. The RV10 has a lien on the plane with the seller's financier. The seller is setting up an escrow account for the transaction. I would like to know exactly how I will be assured that the lien will be released on the plane I am trading for. Or a link to a contact in this forum who would have expertise in such matters. I bought a plane years ago without a title search and 2 years down the road I finally got it registered because the seller's ex wife had a lien on the airplane.

The seller proposes to fly his airplane to my airport. Hand me the keys to his RV10 and fly off with my RV7 (on a weekend) banks and escrow companies are closed of course. I'd appreciate a suggestion on a safer way (financially speaking) to make this transfer at my airport. We (the seller and I) have an agreement to have proof of insurance bound by insurance policies in buyers (me) and seller's (his) names before the transfer of the airplanes takes place.

I'd really appreciate the time it might take for someone in this forum to lay out the mechanics of this transaction for me. I'm a little nervous.

Thanks for any advice you may have.
 
We used AEROtitle out of Oklahoma City recently for a A/C purchase with satisfying results.
AEROtitle.com
 
[QUOTE="Walt, post: 1823128, member: 1964

I've helped a few folks sell aircraft using this escrow business with good results.
https://www.aerospacereports.com/
[/QUOTE]
++ for what Walt said, I have used: Kylie McClain<[email protected]> for many transfers, purchases and even "N" number changes. She is Great to work with and they hold the Escrow until everyone is happy.
 
I bought an RV9 in a private transaction last summer. I wrote up the details and logistics steps in a pre-purchase offer. we both signed it, and then executed step by step as written. The last two steps were wiring the money and the seller mailing his registration to the FAA. No issues at all. it probably depends on how comfortable you are with the seller. I guess we are used to taking some calculated risks as experimenters :)
 
Had an outstanding experience with AIC title

Homepage - AIC Title Service

www.aictitle.com www.aictitle.com

Vic Syracuse recommended them to me. If I recall it was around $400. They handled everything… Lien search, escrow of the funds, FAA registration of the new owner, etc. great communication. Solved all my problems for $400. Very prompt at replying to any questions by phone or email. Well worth it.
 
Won’t the RV-10 owner require to use the funds you provided to clear the lien ? If so he has your money before you can have a clear title.
 
You’re basically describing the perfect use case for an escrow/title company. You pay the amount due to escrow. They pay off the lienholder and disperse the remaining funds to the seller.

What you’re trying to do is simple and is done everyday by title companies in OKC.
 
SPX said:
What you’re trying to do is simple and is done everyday by title companies in OKC.
Click to expand...
Including the part about insuring each other in the currently owned plane and swapping planes before titles transfer?

I doubt that is done ANY DAY by title companies ANYWHERE.
 
rolivi said:
Including the part about insuring each other in the currently owned plane and swapping planes before titles transfer?

I doubt that is done ANY DAY by title companies ANYWHERE.
Click to expand...

I assumed (wrongly, I guess) that the readers would know that title companies do the title part of the transaction and not the insurance part. Plus, the OP said

We (the seller and I) have an agreement to have proof of insurance bound by insurance policies in buyers (me) and seller's (his) names before the transfer of the airplanes takes place.
Click to expand...

… So it doesn’t seem like his questions are about how to get an insurance policy.
 
I don't have this year's policy handy on this computer, so this is from 2 years ago, but don't most insurance policies have this sort of clause?
VII. AUTOMATIC INSURANCE FOR NEWLY ACQUIRED
AIRCRAFT
All Coverages
If the Named Insured acquires ownership of an aircraft in addition to the aircraft described in Item 4 of the Declarations and within thirty days thereafter reports such acquisition to the Company, then the insurance afforded by this policy shall apply to such additional aircraft as of the time of such acquisition, provided that the Company insured all other aircraft owned in whole or in part by the Named Insured on such acquisition date. Unless the Named Insured and the Company agree otherwise, the Coverages and limits of liability pertaining to said additional aircraft shall be the same as is provided for that aircraft which is described in Item 4 of the Declarations as having the greatest passenger carrying capacity,
and the Insured Value of the additional aircraft shall be the actual cost of the aircraft to the Named Insured but not exceeding 150% of the highest Insured Value of any aircraft described in Item 4 of the Declarations. The Named Insured shall pay any additional premium required because of the application of the insurance to such other aircraft.
Click to expand...
 
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