Free Aircraft (Airplane) Bill of Sale Form

When buying or selling an airplane privately, it is paramount that you record the transaction by parties involved, aircraft description, payment details, and date of purchase. Doing this will not only protect you from possible disputes over ownership and liability it will also create a formal record of the transfer of ownership, which is a legal requirement when registering an aircraft.

Are you planning to buy or sell an airplane? This article explains how to record the exchange through an aircraft bill of sale.

What Is an Aircraft (Airplane) Bill of Sale?

An aircraft (airplane) bill of sale is a legal document that records the private exchange of ownership of an aircraft between a buyer and seller. It includes details about the buyer, seller, aircraft, price, and terms of sale. Upon signing, it serves as a binding agreement between the two parties.

Aircraft (Airplane) Bill of Sale – Word Template

Aircraft (Airplane) Bill of Sale 20210831

An aircraft (airplane) bill of sale is a fillable legal document that records the transaction between a buyer and seller involving a privately-owned airplane.

Download: Microsoft Word (.docx)

    How to File an Aircraft (Airplane) Bill of Sale

    The entire process of buying or selling an aircraft should be filed and recorded in a bill of sale. The following guide describes this process:

    Step 1: Determine the Purchase Price

    As the seller, you should determine the selling price for your aircraft through market research or a professional appraisal.

    Step 2: Complete the Bill of Sale

    If you and a potential buyer agree on the purchase price and terms of sale, fill out a bill of sale with the necessary information (discussed in a later section). Some of the terms you will need to agree to include:

    • Taxes: The party responsible for paying local, State, and federal taxes associated with the sale.
    • Assignment: That the bill of sale cannot be assigned to another party without both signatures.
    • Inability to perform: What happens when the buyer or seller fails to perform their part.
    • Laws: The State under whose laws the agreement is written and governed.
    • Severability: Whether the avoidance of one term in the agreement voids the entire agreement.

    After completing the bill of sale, the buyer must make a down payment.

    Step 3: Arrange for an Inspection

    With the down payment paid, the buyer will have a period to inspect the aircraft through a professional mechanic. This can take a few hours to some days, depending on the size of the plane.

    Step 4: Complete the Sale

    If the inspection turns out satisfactory results, the buyer must make the full payment, and you must deliver the aircraft on the set date.

    Step 5: Register the Aircraft with the FAA

    Once the buyer receives the aircraft, they must present a copy of the current registration, past bills of sale, and current signed bill of sale to the Federal Aviation Agency to register the plane. They must also complete an AC Form 8050-1 and pay a registration fee of $5. All these documents must be sent to the following address via USPS:

    FAA Aircraft Registration Branch

    PO Box 25504

    Oklahoma City, OK 73125-0504

    Federal Aviation Act (Recording Requirements)

    The Federal Aviation Act (FAA) requires that buyers prove that they bought, own, and registered their airplanes. A buyer can prove they bought the aircraft by presenting a bill of sale, while ownership is proved through both the bill of sale and current registration. After the buyer presents these documents, they can confirm registration by paying a fee to the FAA and filing an AC Form 8050-1.

    How to Write an Airplane Bill of Sale

    Because the buyer uses the Aircraft (Airplane) Bill of Sale to register the aircraft upon purchase, it must be drafted per local, State, and federal laws. This step-by-step guide should help you do this:

    Step 1: Find a suitable bill of sale template by acquiring it from your State or downloading a copy.

    Step 2: Indicate the date of the agreement (date when the bill of sale was prepared).

    Step 3: Supply the buyer and seller names, contact information, and mailing addresses.

    Step 4: Describe the aircraft by make, model, year, serial number, and FAA registration number.

    Step 5: Note the terms of purchase by indicating the purchase price and date of transaction (when the buyer will provide the funds).

    Step 6: Confirm that the aircraft does not carry any liens or encumbrances (claims against the airplane), such as user restrictions or loans.

    Step 7: Define any other terms of sale such as deposit payment, inspection period, and warranty.

    Tip: Unless otherwise stated, aircrafts sold through private transactions are sold in as-is condition. This means that the seller will not assume responsibility for any defects that appear after the sale.

    Step 8: Have the buyer and seller sign and date the bill of sale. You may also include signatures from witnesses and a notary if you wish to or it is a requirement.

    Aircraft (Airplane) Bill of Sale Format

    {Date of Agreement}

    PARTIES: This bill of sale represents the agreement entered into on {date} between {seller’s name} of {seller’s mailing address}, hereafter known as the Seller, and {buyer’s name} of {buyer’s mailing address}, hereafter known as the Buyer.

    The Buyer and Seller agree to the following terms:

    AIRCRAFT: The Buyer agrees to buy from the Seller the aircraft described as {model, make, year, color, registration number, serial number, etc.}, hereafter known as the Aircraft.

    PURCHASE PRICE: The Seller agrees to transfer ownership of the Aircraft to the Buyer in exchange for payment in the amount of {amount} due on {date of purchase}.

    DEPOSIT: The Buyer agrees to make a down payment of {amount} on {date} that is {non-refundable/refundable upon the following conditions}, {conditions}. The Seller agrees to count the down payment toward the final purchase price.

    DELIVERY: The Seller agrees to transfer the Aircraft’s title to the Buyer on {date}, upon receiving payment in {amount}.

    LIENS: The Seller confirms that they are the legal owner of the Aircraft and that it does not hold any debts, liens, or encumbrances.

    INSPECTION: The Seller agrees to allow the Buyer an inspection period of {duration} from {date}, within which the Buyer shall inspect the Aircraft at their own expense.

    WARRANTY: The Buyer confirms that they understand the Aircraft is being sold as-is, and the Seller shall not be held liable for any defects after {date of purchase}.

    VOIDABILITY: This agreement shall be considered void if the Buyer fails to make the payment or the Seller fails to transfer ownership of the Aircraft by the set date. Upon voidance, all refundable amounts shall be refunded to the Buyer, and the Seller shall keep any non-refundable deposits.

    TAXES: {The Buyer agrees to pay /The Buyer and Seller agree to split} all the taxes imposed on the sale by local, State, and federal governments.

    LAWS: This agreement is written and governed per the laws of the State of {state name}.

    AUTHORIZATION: This bill of sale shall be considered final and complete upon the execution of the following signatures:

    Buyer: {signature}, {signature date}

    Seller: {signature}, {signature date}

    Key Points

    A well-written aircraft (airplane) bill of sale records the transfer of ownership of a civilian-owned non-commercial airplane. It captures the buyer and seller details, aircraft description, purchase price, and date of transaction. Once signed, it is used by the buyer to register the aircraft and releases the seller from future liability in any legal issues. It is typically prepared by the seller and should include information consistent with the aircraft’s title.

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