December 2, 2013 – Newsletter
Buying the right computer and getting it to work properly is no more complicated than building a nuclear reactor from wristwatch parts in a darkened room using only your teeth.
Aircraft Escrow Closings – The Documents
The number of documents in a typical escrow agent’s closing file is nothing short of staggering! Documents include massive e-mail communications, original conveyances and transmitting letters of instruction, contracts and agreements, overnight-couriered conveyance documents and scanned and e-mailed documents for the International Registry.
The Aircraft Title Report
The title report is the root document to determine what documents will be accumulated to pass lien-free title to the purchaser. In our office, these reports are addressed to BATI – Escrow Department and circulated to all parties in the escrow.
BATI Byline: When titles are encumbered it is courteous to send
the report first to the seller to make him aware of any discrepancies reported
so he won’t be blindsided if something shows up as a surprise to him. Most
sellers heartily appreciate this so the title glitch can be mentioned to the buyer
instead of the buyer hearing it for the first time from the escrow agent.
Lien Releases, Lease Terminations and Disclaimers
Can be prepared by the escrow agent – no worries.
TUE info for the IR
BATI will help a transacting user sign himself up at the IR (no fee) or we will be the administrator for the transacting user (for a fee).
Bill of Sale
After the implementation of the IR in 2006 the escrow agent may request a Form 8050-2, FAA Aircraft Bill of Sale; and a Warranty Bill of Sale (which will also describe any engines and/or propellers in addition to the airframe).
Aircraft Registration Application
Use only the FAA form (facsimiles are not acceptable to FAA) – escrow agent can provide this form via overnight courier; or you may visit a FSDO and obtain one! (See how to find a FSDO below!)
Limited Liability Company documents –
Special document needed to support registration – Escrow agent will provide!
Non-Citizen Trust Documentation
The FAA Registry now requires that an opinion of Aeronautical Center Counsel be provided to the Registry with any non-citizen trust, advising the Registry that the trust documentation meets the FAA standards for registering to an owner trustee – escrow agent can get this for you.
Security Agreements and Leases
As with all conveyances submitted for recordation – must bear original, ink
signatures and be signed by parties with appropriate titles.
BATI – FAA and IR UPDATES
Flight Standard District Offices (FSDO) are regional offices of the FAA and there are about 82 such offices nationwide. You may locate the office in your state by going to Registry.FAA.Gov/Airmen Certification Branch/Airman Certification. There you will find drop-down menus by State which tell you the location (including a map) of your state’s FSDO/
The following responsibilities are handled by FSDOs:
- To report a low-flying aircraft
- Accident reporting
- Air carrier certification and operations
- Aircraft maintenance
- Aircraft operational issues
- Aircraft permits
- Airmen certification (licensing) for pilots, mechanics, repairmen, dispatchers and parachute riggers
- Certification and modification issues
- Enforcement of Airmen and Aircraft Regulations
When you change the N-number on your aircraft, you take your aircraft logbook, your current airworthiness certificate, a copy of the executed Form 8050-64, and the registration certificate with the new N-number on it, to the FSDO to obtain a revised certificate of airworthiness under the new N-number. Before you journey to your FSDO for this airworthiness certificate, give them a call and make sure you are providing everything they need!
Please note: If you would like to highlight your firm or your aircraft in BATI’s pot-pourri section, please send us a photograph and text (sschroeder@BATI.aero) and we will try to work you in on future Newsletters!
QUEST Aircraft Kodiak 100
BATI closed the escrow transaction for N86KQ a couple of weeks ago for a client in Jacksonville, FL.
The first Kodiak was delivered to Spirit Air in January, 2008. As of September 2013, a total of 100 Kodiaks had been built!
|Quest Kodiak 100
Capacity: 9 Passengers
Length: 33.4 feet; Wingspan: 45.0 ft, Height: 15.4 ft.
Powered by Pratt & Whitney Canada PT6A-34 turboprop, 750 hp takeoff