Aircraft Purchase Agreement

Caution: Aircraft transactions are complex and regulated by state and federal law. The purchase or sale of an aircraft may have tax and liability implications. Individuals, partnerships, corporations, and other entities should always seek the advice of legal counsel before entering into an agreement to buy or sell an aircraft.

Overview
Aircraft Purchase Agreements (PAs) define the terms of the sale of an aircraft. All PAs are governed by state law. The applicable state law depends on the location of the sale, the location of the buyer and seller, and the terms of the sale. Always have an attorney draft or review a PA before signing. Attorneys drafting or reviewing the agreement must be familiar with the applicable state law and licensed in a state connected with the transaction.

Common Mistakes made when purchasing an aircraft:

• Not having a written purchase agreement
• Using a poorly written purchase agreement
• Not having an attorney review the agreement
• Having unrealistic expectations
• Not obtaining a title search before purchase
• Transferring funds without an escrow account
• Not including a termination date in the agreement

Do I need a Purchase Agreement to buy an aircraft?
Most states do not require a formal Aircraft Purchase Agreement. However, purchasing an aircraft without a written agreement may lead to legal disputes and potential liability.

Note: An FAA Bill-of-Sale (BOS) is always required to register an aircraft. The BOS is a separate document from the Purchase Agreement. You should have both a BOS and a PA for every aircraft transaction.

Resources from AOPA
The Aircraft Owners and Pilots Association (AOPA) offers multiple resources for aircraft buyers and sellers. AOPA members can access a template sale agreement as a starting point before contacting an attorney. Additionally, AOPA members who sign up for the legal services plan are provided with a review of their aircraft sale/purchase agreement (once per year). The Law Offices of Robert M. Strumor, LLC is included in the AOPA Attorney Panel and available to assist AOPA members.

Hiring Our Firm
Our firm is available to draft, edit, and review Aircraft Purchase Agreements in Florida, Colorado, Minnesota, New Mexico, and Massachusetts. If you need assistance with a PA in another state, please get in touch with us via the button below, and we will be happy to recommend an attorney in that state. For more information, please click here.

Escrow and Title Services
A title search and an escrow account are highly recommended for all aircraft transitions. This law firm frequently recommends Aero-Space Reports. Be sure to include an escrow provision in your PA and specify which party or parties will pay for that service.