How a Lawyer Can Help When Selling an Aircraft

Aircraft sales are subject to a variety of regulations, making selling an aircraft a complicated process that requires careful planning and accurate documentation.

Attempting to sell an aircraft without legal counsel can expose you to liability and harm your financial interests. While not legally required, hiring a lawyer is often the best way to protect yourself when selling an aircraft.

An experienced aircraft transaction lawyer can help you reduce exposure to transactional risks when selling an aircraft. Having an attorney enables you to minimize disputes and reduce your exposure to liability.

Aero Law Center services aviation businesses globally for all of your aviation business needs.

Challenges You May Face When Selling an Aircraft

There are many risks that come with selling an aircraft, and having an experienced aircraft transactions attorney by your side is the best way to minimize these challenges.

Some of the potential issues you could encounter during a sale include:

Regulatory obstacles: Federal Aviation Administration (FAA) regulations and airworthiness certificates matter when transferring ownership of an aircraft. Additionally, international aviation rules may apply if the aircraft is being transferred to a foreign registry. An attorney can assist with compliance with applicable regulatory requirements.
Title disputes: When there are unresolved liens on an aircraft or conflicting ownership records, finalizing a sale may not be possible. Your lawyer can examine all the paperwork related to your aircraft and address potential issues before they arise.
Broker disputes: Any disputes you have with brokers regarding commissions or expectations can quickly turn into costly legal issues. An aviation lawyer can help you resolve conflicts efficiently while protecting your interests in the process.
Financing and tax issues: Many aircraft sales involve complicated financing issues and tax laws. Your attorney can help structure a transaction that accounts for financing and tax considerations and supports an orderly closing.
Contract breaches: When the buying party breaches a contractual obligation, it can cause delays in the sale of your aircraft, and the deal may fall apart entirely. An experienced lawyer can help enforce a buying agreement and confirm that the transaction is completed.

These are only some of the challenges you may face when selling an aircraft. Hiring an attorney to help you through every step of the process is the best way to minimize challenges and secure a successful sale.

An Experienced Aircraft Transaction Lawyer Can Provide You With Proactive Legal Support When Selling Your Aircraft

The best way to avoid issues during an aircraft transaction is to hire an experienced attorney who can anticipate problems and take proactive measures. Some of the actions a lawyer can take to help with a smooth sale include:

Regulatory compliance support: Before you move forward with the sale of your aircraft, an experienced attorney can assist with compliance with applicable FAA regulations and, where relevant, international aviation requirements.
Resolving title and lien issues: Your lawyer can conduct thorough title searches, resolve any ownership disputes, and address any liens before you put your aircraft on the market to ensure there are no unresolved issues during closing.
Drafting and reviewing contracts: Your lawyer can prepare your selling contract and make sure the terms are clear and enforceable. Taking these steps will help you minimize disputes during the sale process.
Developing sound tax and depreciation strategies: An experienced lawyer can coordinate with tax advisors to tailor the terms of a deal to minimize tax burden when possible, maximize financial benefits, and evaluate available tax and depreciation strategies, including bonus depreciation where applicable under current tax law. Thoughtful planning can help you avoid costly expenses in the future.
Preventing and resolving disputes: Your attorney can anticipate potential conflicts with brokers or buyers and take steps to address any issues before they arise. Your attorney can negotiate a resolution, minimizing delays and avoiding a breakdown of your deal.

Whether it’s aircraft transactions, commercial litigation, or compliance, we excel at creating solutions to unique challenges.

Damages an Aircraft Transaction Lawyer Can Help You Recover Following a Sale Dispute

You may be entitled to various damages if issues arise during an aircraft transaction, depending on the terms of the sales agreement and the nature of the provable financial losses involved.

An experienced aviation attorney can help you determine whether you have grounds for pursuing compensation, as well as identify all the types of damages that apply.

Some of the damages you may be able to recover include:

Direct financial losses: The money you were owed under the sales contract.
Lost business opportunities: Disruptions to the sale of your aircraft that force you to miss out on other business opportunities or pass up another sale for one that falls through.
Consequential damages: Financial losses caused by delays, failed closings, or breaches that interfere with other business opportunities.

Compensation depends on the terms of your contract and applicable laws, and not all disputes result in recoverable damages. Our team can help explain your eligibility for recovering compensation.

Get Help From Our Aircraft Transaction Lawyers Today

Financial risk is present in any aircraft transaction. Fortunately, hiring an experienced attorney from Aero Law Center can help minimize this risk and protect your financial future. Our lawyers have over five decades of combined experience with aviation law and have handled transactions totaling over $1 billion.

Whether you are selling a single private jet or an entire fleet of aircraft, we are ready to help you through the process. Contact us today by phone or through our online contact form to schedule a complimentary consultation with a member of our legal team.

We provide comprehensive legal representation tailored to your unique needs.

The sooner you contact our team, the sooner we can put our years of expertise to use and ease you through the process.

Frequently Asked Questions & Support

The Federal Aviation Administration, or the “FAA” is an arm of the Department of Transportation (DOT). It controls aviation business matters, including air traffic management and the certification of personnel and aircraft. The FAA sets the standard for airport conditions and protects U.S. assets during the launch of commercial space vehicles. The FAA issues directives and legal regulations to ensure the safety of all airplanes, including mandated correction for any unsafe conditions in an aircraft. This could include an aircraft’s plane, engine, propeller, or appliance. All operators must conduct business compliantly and follow the FAA’s guidance and provisions, and any certifications must be present in the aircraft.

An FBO stands for Fixed Base Operator (FBO). FBOs operate like private terminals and facilitate private jet and charter operations. Commercial companies are given access by an airport to work on the grounds and provide flight services, fuel, parking, and hangar space. FBOs offer three tiers that provide different accommodations depending on the amount of traffic and size of the airport, including pilot lounges, restrooms and shower facilities, catering, aerial photography, parking, pilot instruction, private jet charter, and much more. Smaller and less busy airports might only offer basic amenities, while more significant, commercial airports have a full suite of extras, like waiting rooms, in-flight catering, and other conveniences.

According to the FAA’s strict aviation provisions and regulations, every aircraft must be deemed “airworthy” to fly. A Standard Airworthiness Certification is the Federal Aviation Administration’s (FAA) official authorization regarding the operation of type-certificated aircraft, including normal, utility, acrobatic, commuter, transport, manned free balloons, and special classes. All operators must have a Standard or Special Airworthiness Certification to prove the safety and condition of the aircraft. It must be publicly visible to all crew members, inspection companies, and passengers in the cockpit or cabin. Certification delays can cost pilots thousands, sometimes millions of dollars, though an aviation lawyer can provide helpful counsel to avoid mistakes and complete the process.

Sometimes mechanics are the only thing standing between the aircraft and a potential problem if an issue is overlooked or not properly taken care of. Maintenance facilities aren’t always at fault. However, suppose a plane crashes, and people are injured or killed. In that case, repair shops are often part of the legal investigation to uncover any mistakes, errors, or other issues that might have caused an accident. Malfunctioning equipment is one cause of crashes, electrical wiring issues, fitting of wrong parts, mistakes, leftover loose objects, incorrect installation of fuel or oil caps, and other similar mistakes are often looked at in a plane accident case.

A fractional jet ownership arrangement affords one or more operators to share in jet ownership through shares or equity in the aircraft. With this arrangement, operators can use the plane for a certain number of hours each year, as outlined in the contract. An interest in an aircraft defines a fractional ownership agreement; shares are sold to multiple owners based on 800 occupied hours and sold in fractions. The cost is divided among the total number of co-operators, and each person is responsible for their operational share. In such an arrangement, flying time typically ranges between 50 and 400 hours, and most jet shares will become multiple of one-sixteenth.

Hangar rash results from an airplane accident or damage to an airplane while being towed in the hangar, moved, or elements inside the hangar that cause physical harm, including falling parts, debris, and weather. Hangar keepers are responsible for any liabilities and unexpected damages to a client’s aircraft. The damage to an airplane can cost thousands to millions of dollars, which also impacts a plane’s overall resale value. Operators often utilize our services when their aircraft has been damaged in hangar storage, a hangar keeper is involved in a lawsuit due to plane damage, or owners need to protect their business from false allegations and lawsuits.

Depending on how much you fly or if you have considered turning your aviation passion into a business, there are various ways to get started outside of an aircraft purchase. Consider purpose, expenses and costs, usage, and other similar factors. Aero Law Center helps operators purchase an aircraft, consider financing options, and adhere to regulations or alternatives such as leasing or fractional ownership. With wet or dry leases, leasing is affordable and accessible with the benefit of fixed monthly payments. Buying shares or equity in an aircraft through fractional ownership is a similar and approachable option if an outright purchase isn’t in the cards.

Do I Need a Lawyer to Sell an Aircraft?

Challenges You May Face When Selling an Aircraft

An Experienced Aircraft Transaction Lawyer Can Provide You With Proactive Legal Support When Selling Your Aircraft

Damages an Aircraft Transaction Lawyer Can Help You Recover Following a Sale Dispute

Get Help From Our Aircraft Transaction Lawyers Today

Frequently Asked Questions & Support