How to Fill Out an Aircraft Bill of Sale

The aircraft bill of sale is a critical document that transfers ownership from seller to buyer. This guide provides a clear, step-by-step approach to completing the form accurately, ensuring compliance with federal aviation requirements, and facilitating a smooth title and registration transfer. It covers essential fields, common pitfalls, and practical tips for both private party and dealer transactions.

What Is An Aircraft Bill Of Sale?

An aircraft bill of sale is a legally binding document confirming the transfer of ownership for an aircraft from the seller to the buyer. It typically includes the aircraft’s identifying details, the purchase price, the condition of the aircraft, and warranties or representations by the seller. In the United States, this document often accompanies title transfer and registration actions with the Federal Aviation Administration (FAA). A properly prepared bill of sale helps prevent disputes and provides a clear record for tax and insurance purposes.

Key Fields On The Form

• Aircraft Identification: Tail number (N-number), make, model, serial number, and year of manufacture.
• Seller And Buyer Information: Legal names, addresses, and contact details for both parties.
• Purchase Price And Currency: Exact amount paid or to be paid, including any deposits or trades.
• Date Of Sale: The official date the transfer occurs, which may differ from the signing date.
• Aircraft Description: Airframe hours, engine hours, and any equipment notes or inclusions (inertial reels, avionics, life rafts, etc.).
• Representations And Warranties: Any assurances by the seller regarding airworthiness, undisclosed liens, or known defects.
• lien and Encumbrances: A statement about existing liens, mortgages, or security interests and their resolution.
• As-Is Statement: Whether the sale is on an “as is” basis and any exceptions to this condition.
• Signatures And Dates: Signatures of both parties, witnesses if required, and the date of signing.
• Notarization Or Acknowledgment: Some jurisdictions require notarization; include a notary block if applicable.
• Sales Tax And Transfer Fees: Clarify who pays any applicable taxes or state transfer fees, if relevant.
• FAA And Registration Details: Information relevant to the FAA’s records, such as transfer of ownership to the registered owner and any related registration tasks.

Step By Step How To Fill Out

1. Gather Documentation: Collect the current title, any lien release documents, maintenance records, and proof of payment. Have the aircraft’s title and registration paperwork on hand to verify data accuracy.
2. Identify The Parties: Enter legal names, addresses, and contact information for both buyer and seller. Ensure names match those on official government documents to avoid misidentification.
3. Record The Aircraft Details: Fill in the tail number (N-number), make, model, serial number, year, and any relevant airframe or engine data. Confirm the information against the FAA registry or airworthiness certificate.
4. Document The Financial Terms: List the purchase price, any deposits, method of payment, and the date of payment. Note any adjustments, credits, or prorated items.
5. State The Transfer Date: Use the actual date the ownership changes hands. If the signing occurs earlier, the transfer date should reflect the closing date.
6. Describe The Aircraft Condition And Inclusions: Include notes on airframe hours, engine hours, and any installed equipment or accessories. List optional items, spare parts, and maintenance documentation included with the sale.
7. Address Liens And Encumbrances: If a lien exists, indicate its status and how it will be released. Attach a lien release or payoff confirmation if needed.
8. State Warranties Or As-Is Terms: Clearly specify whether the sale is final on an as-is basis and any limited warranties offered by the seller.
9. Include Signatures And Date: Both parties should sign and date the document. If required, add a witness or notary seal and date of notarization.
10. Review For Compliance: Double-check for consistency with FAA requirements, state laws, and any applicable tax or registration rules. Ensure all required fields are completed before submission.

Tips To Avoid Common Mistakes

• Verify Identification: Ensure all names, addresses, and identifiers exactly match official documents to prevent registration rejections.
• Attach Supporting Documents: Include the title, lien releases, airworthiness certificate, and maintenance logs when relevant to support the sale terms.
• Be Precise With Values: Use precise figures for purchase price, deposits, and any credits to avoid disputes during tax reporting or title processing.
• Clarify Asset Inclusions: List all equipment and optional items included with sale to avoid disputes over what remains with the aircraft.
• Check Local And Federal Rules: Some states have specific notary or acknowledgment requirements; verify in advance for the sale locality.
• Preserve Copies: Keep copies for both buyer and seller, and retain a scanned version for records and future reference.
• Coordinate With The FAA Registry: If the transfer involves a change of ownership, ensure the bill of sale aligns with FAA registration processes and title transfer steps.

After The Sale—Titles, Registration, And Fees

Once the bill of sale is executed, the buyer typically handles title transfer and aircraft registration with the FAA. The seller should forward the signed title, bill of sale, lien releases, and any required affidavits to close the transaction. The buyer must ensure the aircraft is insurable and that an updated airworthiness certificate reflects ownership changes where applicable. Fees for title transfer and registration vary by state and may include recording fees, registration fees, and potential taxes. Consult the FAA and state aviation authorities to confirm the exact requirements and timelines for filing and recording the transfer.

Sample Field Mapping For Quick Reference