Similar to other types of property, airplanes can be freely purchased and sold by individuals using respective documents. An aircraft bill of sale form provides a safe and reliable way to transfer the asset from one party to another. This form, also known as Form 8050-2, is necessary to sell or purchase an aircraft in any state of the U.S.
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What Is an Aircraft Bill of Sale?
An aircraft (or airplane) bill of sale refers to a legal document designed to record the transition of ownership over a plane. Aircraft bills of sale are fairly similar to documents used to sell other types of vehicles, such as automobiles or ATVs. All bills of sale must contain information about the participating sides along with a detailed description of the vehicle being sold. However, aircraft bills of sale possess a distinctive feature — they are obligatory to use whenever selling or buying an airplane.
The Federal Aviation Administration (FAA) provides clear guidance on how to register a new aircraft. According to the official Aircraft Registration Application form, you must provide a bill of sale as evidence of ownership. The full document is available here: FFA AC8050-1. Properly designing and filling in a bill of sale form is essential to ensure that the transition of ownership occurs according to the law.
Mind that an aircraft bill of sale form must be signed by both participating sides to obtain legal value. The documents must also contain personal data about a buyer and a seller, including their names, mailing addresses, and emails. Finalizing the deal would be impossible without providing a detailed description of the aircraft itself. All additional parts that are not originally supplied with the airplane must be listed separately.
Advantages of Bills of Sale for Aircraft
Despite the strict regulation, aircraft bills of sale are quite simple to utilize, which has facilitated their massive usage. If all terms of the deal were arranged before the transaction date, signing a bill of sale won’t take more than an hour. In addition, these documents act as proof of ownership legally recognized by courts, banks, and other organizations (both governmental and private). This may assist you when qualifying for a loan; a valuable asset in your possession is a decent argument for providing you with the needed financial aid.
A Step-by-Step Guide to Selling Your Aircraft
Although selling airplanes may seem complicated, the whole procedure isn’t much different from trading cars, RVs, or ATVs. To sell your aircraft with a maximum profit, follow the steps listed below:
- Define the price of your aircraft. If you know only the approximate value of your aircraft, this is the time to define its exact price. Try looking out for similar models in your area to discover the plane’s price. Consider all repairs made throughout the plane’s history, damage that it has taken, and upgrades (if any). It’s also fairly common to invite a professional to evaluate the aircraft being sold, though such service is quite costly.
- List the airplane for sale. Don’t limit yourself to one platform when advertising the plane. Use all available marketing means, including websites, themed magazines, word of mouth, and brokerage services. As a rule, brokers work only with aircrafts worth 40,000 USD or more.
- Find a reliable buyer and negotiate on the price. Before signing the deal, most buyers would want to conduct an examination of the aircraft (possibly, with inviting independent experts). At this stage, you’ll need to determine the final price that would suit both sides along with the payment method. You may request a one-time transfer, receiving the whole sum immediately after signing the bill, use a check or a promissory note.
- Meet with the buyer to sign a bill of sale. Once all the negotiations are completed, the sides must meet to sign the bill of sale and close the deal. Each participant receives a copy of the document, which should be signed by all parties. If any independent witnesses were invited, they should sign the bill as well.
- Register the plane with the FAA (buyers only). After obtaining the new aircraft, the buyer must register it to receive a flying license.
Designing a Legally Valid Aircraft Bill of Sale
Creating a state-authorized bill of sale requires the utmost attention to detail and careful consideration of all necessary pieces of information. Fortunately, there’s no need to design a bill yourself; a pre-arranged document is available on the FAA’s website. You can also download a fillable and printable PDF template from our website for free. In case this template fails to meet your requirements, consider using our form builder to create a custom option.