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How does an aircraft
title differ from my car title?
Legal
ownership of any aircraft is
determined by the aircraft "Title". We use quotes
here, because there is no one piece of official looking
paper that can be called a "Title" as we're used
to thinking of them. Unlike your car or boat title, an aircraft
"Title" is actually a complete folder kept in
the vaults of the FAA Aircraft Registry building in Oklahoma
City. Each time a Bill of Sale, a lien, or a 337 is submitted
to the FAA it is reviewed for completeness and accuracy,
then added to the folder.
In an ideal world, all of
this public information would be instantly available to
all of us on the internet. Not only is this NOT the case,
but the FAA has made it clear that for "security reasons"
this will never happen. (In fact, they don't even allow
the public into the "public records" building!)
When you request a title search, an FAA registered title
researcher must physically go to the building, request the
file folder for a particular N number, wait a minimum of
two hours while the FAA duplicates the file for their examination.
They then must carefully review all of the file contents
to prepare your title search report. It is a very
tedious task, and in many cases can take several hours.
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Regardless of other circumstances--
even if you're buying out your partner- it is all too possible
that ANY aircraft may have a lien against
it of which the present owner is totally unaware. The
aircraft industry is full of horror stories about people
who have ignored this advice, spent a small fortune restoring
or painting or equipping their pride and joy, only to have
a lien holder from years back show up one day and legally
reclaim his possession!
Don't put yourself in this
precarious position, even if the seller is your best friend.
The FAA does not notify an aircraft
owner when a lien is filed against his aircraft,
and the only way to be sure, even for the seller, is
to run a current title search.
Sometimes
a title search will reveal that the present owner never
filed his Bill of Sale, or even registered the
airplane- this is not all that unusual. You can still buy
and register the aircraft, but the FAA is going to want
to see a proper paperwork chain: from owner "A"
to owner "B", and then from owner "B"
to you (called a "chain of title").
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Why
order a Title Search when I can now get
the aircraft records on CD ROM from the FAA? |
There are several very good
reasons not to rely on this approach. First, the
CD that the FAA will provide you is often NOT COMPLETE.
Many times a registration form, 337 or lien assignment has
recently arrived at the FAA registry, and has NOT yet been
placed on the CD ROM. These items are known in the industry
as "loose docs", and will NOT show up on the CD
you receive from the feds. The
only way to be sure that you're looking at ALL the documents
relevant to any aircraft is have the entire file professionally
examined by a title expert.
Second, it takes
about 10 days for the FAA
CD to reach you. Through our services you'll receive it
in a day or two.
Also, unless you're a title
examiner, tracking ownership from the raw documents (which
is all you get on the CD) can be very confusing and intimidating.
(When we ordered a CD for a 1963 Apache, the Registration
file alone was 24 Megabytes in size!) Wading through it
to determine Lien status would take hours and hours!) If
you know how to determine that a lien was properly released,
how to track bank name changes through the FDIC bank absorbtions
of the late 80's, and how to determine true chain of title,
by all means order the CD from the FAA. If not, we recommend
a professional, certified title search performed by title
experts.
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How
long does it take to get the results? |
Most search
requests we receive are processed within 24-36 hours.
Sometimes, however, the FAA has
moved the file to a different location while they update
it with recently received information. If the aircraft you're
researching is undergoing a records update, our researchers
must put in a special request for these records, to which
the feds can sometimes take up to one month to respond.
While this delay does not happen often, it's always a good
idea to request
your title search well before you actually purchase your
plane.
NEVER,
NEVER buy an airplane without doing a title search!
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