Preparing for an Aircraft Sale
Preparing in advance for selling your aircraft will reduce friction in the transaction, create a process that is easier for you and the buyer and may ultimately result in a better price.
Locate Aircraft Records
Do you have all of the aircraft’s records? Are they complete and current? If they are electronic records are they in a system that is easily transferable to the buyer?
Create a List of Loose Equipment
Identify what loose equipment you own and where it is located so that it can be provided to the buyer.
Create an Initial Spec Sheet
Your specification sheet should accurately identify what avionics are on the aircraft and the maintenance programs in which the aircraft is enrolled. Check the list against what is actually on the aircraft. Don’t just take the list from when you bought the plane and utilize it. Do you have copies of the maintenance programs? Locate the contact information for your contact at the maintenance program vendor. Make sure each of the programs are paid-up and that your payables department is ready to make an interim final payment prior to closing.
Interview Aircraft Brokers
Hire an aircraft broker you trust, who you will enjoy working with, who is familiar with the market for your aircraft, and who represents your interests.
Notify Your Aviation Counsel
Aviation counsel can review your brokers agreement, review any letters of intent received from interested buyers, and review and negotiate the final purchase agreement. Aviation counsel can also assist you with identifying and clearing any liens on the aircraft and preparing to register the sale on the International Aircraft Registry.
Michelle M. Wade is a Partner with the aviation law firm of Jetstream Aviation Law, P.A., and counsel clients on the acquisition, financing, and operation of corporate jets operated under Part 91 and Part 135 of the US Federal Aviation Regulations. Jetstream Aviation Law can be found at www.JetstreamLaw.com.
The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.