You have found the right aircraft for your mission; you have a lender and you are now a few days away from your ultimate goal of landing the plane of your dreams. Out of nowhere you get a phone call from the lender. Last-minute confusion now threatens to block or reverse the deal. What happened? Here are four common trips:
1. Last minute ideas
Did you change your mind halfway through the deal about how you want the plane to be owned, or how the plane will be used? One of the biggest delays comes from buyers who suddenly decide that their aircraft should not be personally owned but rather owned by an LLC.
First of all, you have now changed the financial picture on which the lender bases the parameters of the loan. Second, you’ve just added complexity to the chord. Complexity adds time. Third, an aerospace LLC is different from other LLCs. The nuances are important enough that we suggest that you contact AOPA Legal, or an aviation lawyer, before starting the paperwork.
2. Title issues
Did you forget to order a title search from a reputable title company? Signatures missing from the logbook, an unqualified person performing a logbook approval, the presence of a hitherto unseen privilege are all examples of items that can put a “cloud” on a title. Before the title can be cleared, a title company must do due diligence.
3. Pre-purchase inspection
What could go wrong with a pre-purchase inspection? What if the plane is stranded abroad? How about a dispute between the seller and the buyer as to where the pre-purchase will take place? How about a pandemic that interrupts business operations and air travel for an indefinite period of time? From the mundane to the unimaginable before, a myriad of things can affect pre-purchase. This is why a pre-purchase agreement is vital. In it, all the parameters of a pre-purchase are codified and agreed upon beforehand, which hopefully alleviates as many obstructive circumstances as possible.
Even with this, the pre-purchase inspection will invariably discover an addressable item. The resolution of this item will then have to be negotiated in the price if it is not an airworthy item, or fixed and inspected before, if it is an airworthy item.
Unreadable logbook documents, missing documents, documents missing the required notary imprint – are a partial list of paperwork issues that could slow down the closing process. AOPA Aviation Finance can help build a paperwork checklist ahead of time that will help avoid this pitfall.
Very good advice. Advantageous rates. All thanks to helpful and responsive representatives you can trust! Three good reasons to turn to AOPA Aviation Finance when buying an aircraft. If you need a reliable source of funding with people who are on your side, just call 800.62.PLANE (800.627.5263) or click here to request a quote.