Suggested Checklist For The Sale Of A Homebuilt Or Restored Aircraft
In order to obtain the maximum liability protection provided by your state’s laws, you should consider consulting an attorney when selling your aircraft. The attorney should be knowledgeable in aviation matters, specific to a hold-harmless agreement for the sale of your homebuilt or restored aircraft. Although these types of hold-harmless agreements are not favored by the law, both the seller and the purchaser can benefit greatly from a well-written aircraft sale agreement.
In addition to the specifics of the agreement, the seller and the purchaser of the homebuilt or restored aircraft may wish to consider, with legal counsel, the inclusion of the following into the sale agreement. Understandably, you may wish to use some or all of the suggestions below based on your particular requirements. This list is not intended to be a complete guide, but represents suggestions for you and your local attorney.
- A warranty by the seller that the aircraft is free and clear of all liens, claims and encumbrances, including any applicable federal and state taxes.
- An agreement by the seller and the purchaser that the aircraft is sold on an “as is” basis with a disclaimer of any express, implied or other warranties specific to airworthiness or mechanical condition.
- A warranty by the seller that the aircraft will be delivered with an appropriate FAA Bill of Sale; other required registration documents and clear title, where appropriate.
- An acknowledgment by the purchaser that he is buying a homebuilt or restored aircraft.
- An offer by the seller to make the aircraft available to the purchaser at an agreed location prior to delivery of the aircraft to allow the purchaser to have a pre-purchase inspection performed by the purchaser’s agent.
- An acknowledgment by the purchaser that he/she has had the aircraft and its records inspected by an FAA rated mechanic or FAA approved repair station.
- The sale of the homebuilt or restored aircraft should be based on the completion of a pre-purchase inspection.
- An agreement by the seller to transfer to the purchaser all logbooks and other records pertaining to the operation and maintenance the aircraft at the time of delivery.
- An agreement as to which state’s law will govern the interpretation of the contract.
- A statement that the purchase agreement shall not be modified except by an instrument in writing agreed to by both the seller and the purchaser.
- An agreement by the purchaser that the seller disclaims the accuracy of any maintenance records, other than those during the time of ownership by the seller.
- Appropriate witness signatures, signatures of the purchaser and the seller, as well as notarization of signatures.
- An agreement by the purchaser to defend and indemnify the seller for losses occurring out of the subsequent operations of the homebuilt or restored aircraft.
- An affirmation by the purchaser and the seller that they are of legal age, under no disability, and have related upon the advice of counsel specific to the aircraft sale agreement.
- The seller and the purchaser should ensure that the following documents are mailed to the FAA on the day of the sale:
- The completed FAA Aircraft Registration Application (FAA Form 8050-1)
- The completed Bill of Sale (FAA Form 8050-2)
(The FAA will consider the owner of the aircraft to be the one who files the Bill of Sale and Registration with its Oklahoma City office first. Aircraft have been sold twice in one day to different and unsuspecting “purchasers”. Your aviation attorney will explain the importance of forwarding these documents to the FAA immediately for liability and other legal purposes.