A title problem, but I want to buy. How handle?

I located a plane I'd like to buy; unfortunately somewhere along the
way the FAA didn't get some paperwork and the current owner didn't get
clear title.
Is there anything I can do to 'buy' the a/c and start working on it,
or do I have to sit on my hands? - Mike

Michael Horowitz wrote:

I located a plane I'd like to buy; unfortunately somewhere along the
way the FAA didn't get some paperwork and the current owner didn't get
clear title.
Is there anything I can do to 'buy' the a/c and start working on it,
or do I have to sit on my hands? - Mike

AOPA...

You have any idea how hard it can be to clear up some of these problems? You
can't 'buy' something that doesn't belong to the person selling it to you.

"Michael Horowitz" wrote in message
...

I located a plane I'd like to buy; unfortunately somewhere along the
way the FAA didn't get some paperwork and the current owner didn't get
clear title.
Is there anything I can do to 'buy' the a/c and start working on it,
or do I have to sit on my hands? - Mike

sometimes it is a matter of incomplete paperwork or no paperwork filed by
the lender to the FAA to release a lien.

I found a glider with the same problem, a lien more than 25 years old that
was not cleared. (Thanx AOPA) Luckily I was able to find the original bank
based on the lien papers that AOPA found and it was still at the same
address and phone number although it had changed names a few times over the
years. I spoke directly (long distance) with the loan officer and explained
the dilemma. I sent him the FAA Forms, he signed them and sent the ORIGINALS
to the FAA and the copy to me. The lien was released and we received notice
that the title was clear.

A mechanics lien would have been tougher.

THEN we went and bought the glider.

Trying to do that after buying the glider is risk on your part. Not a good
idea. And without a clear title you may not be able to get a loan.

BT

"Michael Horowitz" wrote in message
...

I located a plane I'd like to buy; unfortunately somewhere along the
way the FAA didn't get some paperwork and the current owner didn't get
clear title.
Is there anything I can do to 'buy' the a/c and start working on it,
or do I have to sit on my hands? - Mike

Find a willing attorney, put the money into his escrow with both buyer and
seller giving him instructions as to what will happen to the money at what
point in the title clearup and what will happen if the title doesn't clear
in some reasonable (a month or two) time.

More problematic is what to do with the "working" you want to do in the
meantime if the title doesn't clear. You say the improvements are worth a
thousand dollars. The current "owner" says the improvements have damaged
the aircraft in the amount of two thousand dollars. Now the fight begins.

I'd suggest that the two of you draft language as to what "working on it"
means and let the attorney draft it into legalese that keeps both of your
butts out of a sling.

Jim



"Michael Horowitz" wrote in message
...

I located a plane I'd like to buy; unfortunately somewhere along the
way the FAA didn't get some paperwork and the current owner didn't get
clear title.
Is there anything I can do to 'buy' the a/c and start working on it,
or do I have to sit on my hands? - Mike

Don't buy it until all the issues are worked out and the seller
has a clear chain of title. It will cause you trouble when you go
to sell it.

Call Aero Space Reports in OKC. They're a title and escrow
company. They can help you work through the title problems
and they can also sell you title insurance.

What specific title problem is it?


"Michael Horowitz" wrote in message
...

I located a plane I'd like to buy; unfortunately somewhere along the
way the FAA didn't get some paperwork and the current owner didn't get
clear title.
Is there anything I can do to 'buy' the a/c and start working on it,
or do I have to sit on my hands? - Mike

The FAA does not keep title for aircraft. They only register them. Are
you just saying the current owner never changed the registration or are
you saying that someone has a lean against the plane?
An aircraft registration is NOT the same thing as a certified title of
a car from DMV. The FAA does not establish ownership (and it says so
quite clearly on the reg app).

-Robert

Why not just use the AOPA escrow service instead. Seems a lot cheaper
than using an attorney.

"OtisWinslow" wrote in message
...
Don't buy it until all the issues are worked out and the seller
has a clear chain of title. It will cause you trouble when you go
to sell it.

Call Aero Space Reports in OKC. They're a title and escrow
company. They can help you work through the title problems
and they can also sell you title insurance.

What specific title problem is it?

What title?

"OtisWinslow" wrote:

What specific title problem is it?


The FAA Registry shows ownership in the name of the person who owned
it three 'generations' ago. We believe we have a collection of Bills
of Sale, but no one told the FAA. - Mike