sale paperwork, carrying paper

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

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

Dave

David Paule said:

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

Dave

Click to expand...

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

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.

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.

Record an Aircraft Claim of Lien

Jesse is correct. Ask you attorney to research here:

https://www.faa.gov/licenses_certif...ation/aircraft_registry/record_aircraft_lien/

thanks for the link