An aircraft title search is where a clean closing starts: it confirms the seller is the owner of record and shows every lien, security interest and lease recorded against the aircraft, so the buyer receives clean title at closing. In the U.S. that record lives at the FAA Aircraft Registry, and for many jets and larger turboprops the International Registry has to be searched as well. Paired with a neutral escrow agent holding funds and documents until every condition is met, it is what turns a signed purchase agreement into a safe transfer of ownership.
Whether you are buying or selling, the closing is where months of work either pays off or stalls. Our aircraft sales brokerage team manages escrow, title, lien releases and registration on every sale, and this guide covers how the pieces fit and where deals tend to get stuck.
Why the Aircraft Title Search Comes First
The searches themselves are rarely the problem. The problem is what they turn up: a lender from two owners ago whose release was never recorded, a repair facility’s claim, a lease that was never formally terminated. Any of these can follow the aircraft to the new owner if it is still on file at closing, and clearing it afterward is slow and sometimes contentious.
That is why title work should be ordered as soon as the letter of intent is signed and the deposit is in escrow, not after the pre-buy. An early search gives the seller time to chase releases while the inspection is under way, and gives the buyer a clear list of what must be cleared before funds move.
What the FAA Record Is Checked For
- Chain of ownership. Prior bills of sale and registrations, to confirm the seller is the owner of record and the chain has no gaps.
- Recorded security interests. Loan and security agreements filed by lenders, and whether matching releases have been recorded.
- Other recorded liens. Claims filed by repair facilities or other creditors.
- Registration status. Whether the current registration is valid and in the correct owner’s name.
- Leases and other conveyances. Recorded documents that could affect who has rights to the aircraft.
Many aviation title and escrow companies work close to the FAA Registry in Oklahoma City, which lets them review the file quickly and file closing documents promptly once the deal funds.
When the International Registry Applies
The Cape Town Convention covers airframes, helicopters and engines above its size thresholds. That captures many business jets and qualifying engines, while many pistons and some light turboprops fall below it. Note that the engines can qualify even when the question for the airframe is less clear, so both should be checked.
When it applies, the closing includes searching for existing international interests and registering the contract of sale, along with any new financing interest. The registry generally ranks interests by the order in which they are registered, which is why filings are timed tightly around the moment of closing. Your escrow agent and aviation counsel confirm whether the Convention applies and handle the filings.
A Typical Escrow Sequence
- Deposit. The buyer wires the deposit to escrow after the letter of intent, held under the terms the parties agreed.
- Title and lien search. The escrow or title company reviews the FAA record and, if applicable, the International Registry.
- Pre-buy and acceptance. The buyer completes the inspection described in our guide to the aircraft pre-buy inspection, then signs a technical acceptance.
- Document collection. Signed bill of sale, registration application, lien releases and closing statements are delivered to escrow and held until closing.
- Funding. The buyer wires the balance; escrow confirms good funds.
- Closing. On instruction from both sides, escrow pays off any lender, releases the seller’s proceeds and files the documents with the FAA.
Lien Releases: Where Closings Stall
A current loan is the easy case. Escrow obtains a payoff statement, pays the lender from the sale proceeds and files the release with the FAA. If the buyer is financing, the buyer’s lender will want to see that release in hand before it funds.
Old liens are the hard case. A loan paid off years ago may never have had its release recorded, or the original lender may have merged into another bank. Finding the party with authority to sign a release can take weeks, and it is the most common reason a closing date slips.
The Key FAA Closing Documents
| Document | What it does | Who signs |
|---|---|---|
| Aircraft Bill of Sale (AC Form 8050-2) | Transfers ownership from seller to buyer and is recorded with the FAA | Seller |
| Aircraft Registration Application (AC Form 8050-1) | Applies to register the aircraft in the new owner’s name | Buyer |
| Lien releases | Clear recorded security interests from the aircraft’s file | Lender or lienholder |
| Purchase agreement and closing statement | Set out price, conditions and how funds are disbursed | Buyer and seller |
The details on these forms must match the FAA record exactly: registration number, manufacturer, model, serial number and the parties’ legal names. A mismatch can delay registration, so escrow checks every line before filing. How the buyer holds title, whether individually, in an LLC or through a trust, is a question for your aviation counsel and tax advisor, and it should be settled before the registration application is signed.
Seller Checklist for a Faster Closing
- Give us lender contacts and loan details at listing, not at the LOI, so payoffs and releases are lined up early.
- Confirm the registration is current and in the exact legal name on title, especially if the owning entity has changed.
- Have engine program and warranty transfer paperwork ready to go with the aircraft.
- Fix the delivery location and timing in the purchase agreement.
For a broader look at the final stretch, read how to close a jet sale smoothly and securely.
Frequently Asked Questions
How long does an aircraft title search take?
A search of a clean FAA file is usually quick. The time goes into resolving what it finds, such as an old lien with no recorded release, which is why it should be ordered early in the deal.
The engines qualify for the International Registry but I am not sure about the airframe. What then?
Your escrow agent and counsel confirm what qualifies. Engines can be registered and searched in their own right, so they are checked separately rather than assumed to follow the airframe.
Who pays for escrow and title services?
It is negotiated in the purchase agreement. Splitting the escrow fee is common, with each side paying for its own counsel.
Can I fly the aircraft right after closing?
That depends on the FAA’s current rules for operating while a registration application is pending and on your insurance being bound. Confirm both with escrow and your insurer before the delivery flight.
Close With Confidence
A clean closing is planned, not hoped for. Arcadia Jets coordinates the aircraft title search, escrow, lien releases and FAA filings alongside your counsel, so buyers receive clear title and sellers receive their proceeds without last-minute surprises. Talk to our aircraft sales brokerage team or call (888) 660-6511 to start a confidential conversation.
