The importance of an aircraft title search is a topic we’ve covered a lot, and continue to – this step, which in our opinion should be the first, is still often overlooked for no good reason.
Last month In Why Bother with a Title Search, we discussed just how detrimental an aircraft deal “done on a handshake” could be for a client – potentially resulting in a battle over ownership.
This may be the worst-case scenario, but the other possibilities are less than desirable. If title issues are not discovered, a client may have to deal with the extra time and cost of a title clearing service, or an attorney, down the line.
It could even kill the deal entirely just when you think the final step of exchanging funds is imminent. That is not the type of experience we want any potential aircraft buyer to have, but often that beautiful, sleek plane is a little blinding.
It’s our job to make sure a client doesn’t get buyer’s remorse from those “blinders”. While buyers may be more reluctant to spend extra money upfront on items like title searches, it’s crucial to impart how necessary it is to avoid having to pay even more later.
For a minimal amount, buyers can find out the name of the registered owner of the aircraft and whether a bank or any other entity has an outstanding interest against the aircraft.
This is why we continue to recommend starting with a title search – so any potential issues are cleared up. We want to protect a client from not only becoming a victim of an unscrupulous seller, but the increased time, cost, and heartache that clearing clouded titles can cause.