Now What? A Guide to Aircraft Auction and Purchase Procedures
So, you’ve done it. You’ve researched, registered, placed the winning bid! Now what? Whether it’s that Cessna 172 for weekend adventures or a sleek warbird for your collection completing the sale is as simple as it can be. But before you hit the skies, there are some steps to complete to ensure a smooth and secure aircraft transfer. Here’s how it all comes together.
Winning the Auction: What Happens Next?
Once the auction wraps up, buyer and seller information—along with all necessary aircraft details—are sent over to AIC Title. They’ll kick off the process, starting with a title search, funding, and closing to make sure all is in order.
In most cases, the listing agreement and bidder agreement function as a purchase agreement, covering the basics without needing more signatures. However, for some specialty aircraft, sellers might ask for a dedicated purchase agreement, which can be quickly done online with a digital signature—no fax machine necessary!
The Title Search and the Aircraft Closing Room
Within a day or so, both the seller and the buyer will hear from AIC Title. They’ll provide access to a secure online space called the Aircraft Closing Room, where the nitty-gritty of the transaction is managed. Think of it as your virtual cockpit for closing—all paperwork, title search results, and funding instructions will be posted here for easy access. The closing happens wherever your internet is.
Double Verification for Safety
Security is taken seriously at AIC. Before the closing can go through, they use a unique double verification process that requires both written and verbal confirmation from all parties. This added layer of security ensures that the deal closes without any loose ends. Whether you’re buying as an individual, LLC, trust, or corporation, AIC will upload any required forms to keep things moving smoothly.
Clearing the Title: Free and Clear
AIC Title takes the lead on clearing any existing liens on the aircraft, ensuring that current obligations are fully resolved. However, older liens or “blemishes” on a title can present unique challenges. These might result from changes in bank ownership, closures, or transfers, which sometimes make it difficult to verify or remove older liens entirely.
When these legacy issues arise, AirSpace Auctions and AIC Title work together, collaborating with previous owners and financial institutions to address outstanding claims. However, in rare cases, the process may stall if previous lienholders no longer exist or if records are incomplete. In such instances, buyers can choose to accept the slight risk or secure title insurance through AIC.
Even in cases where no visible liens or blemishes exist, title insurance is often a wise choice. It provides peace of mind, ensuring that if any legacy issues do appear, buyers are protected. AIC’s title insurance covers legal fees and any claims that may surface, offering solid protection for the long haul.
Title Insurance for Added Peace of Mind
Let’s talk title insurance. Older liens can sometimes leave blemishes on a title that can be difficult, if not impossible, to clear entirely—particularly if they involve now-defunct banks. In these cases, you have two options: accept the risk or go with title insurance from AIC. This insurance is a strong value proposition, offering the peace of mind that, should any lingering liens arise, the title insurance company will cover legal fees to settle the matter. It’s a lot like insurance on your car or home—you rarely need it, but when you do, you’re glad it’s there.
Funding, Paperwork, and Virtual Closing Room
Once the title search is complete, both buyer and seller will have access to the Aircraft Closing Room, where they can:
- Fill out registration applications
- Submit and receive closing instructions
- Provide or receive wire instructions
- Track funding confirmations
- Opt-in for title insurance
If you’re buying under a corporate entity or trust, AIC will post additional required forms in the room to keep things legally airtight. And don’t worry about getting bogged down—AIC’s expert escrow agents double-check all documentation to avoid FAA delays. This way, everything’s set for a smooth transfer.
Getting Ready to Fly: Final Steps Before Takeoff
With the funding in place, paperwork signed, and the title ready, both buyer and seller provide final consent. This final step triggers the official closing, which ideally takes place on a weekday before 3 PM Central to ensure fast FAA processing. Once the FAA has processed the title, the aircraft is officially yours.
From here, it’s time to start thinking about logistics. After the auction, AirSpace Auctions shares the buyer and seller contact details so they can arrange a pickup, coordinate ferry flights, or plan for transition training if needed. Some sellers offer ferry pilots or transition training, while others may not, but the AirSpace team is here to help with arrangements.
Wrap-Up and Key Considerations
It might sound like a lot, but thanks to the streamlined process, buying an aircraft at auction is relatively straightforward. Here are a few final tips to make sure you’re prepared:
- Arrange Insurance: Instating your insurance during the closing week can help ensure you’re covered from day one.
- Double-Check Open Pilot Policy: If using a ferry pilot or instructor for pickup, make sure they meet your open pilot policy requirements.
- Watch the Weather: The closing period gives you time to monitor weather patterns and plan the best route to get your aircraft home safely.
Buying an aircraft is an exciting step, whether it’s for personal use, training, or adding to your business fleet. At AirSpace Auctions, we’re here to make it as smooth as possible. So go ahead—ask questions, review every document in the closing room, and prepare to meet your new plane. It’ll be waiting, ready for that first flight under your ownership.