February 24, 2014 – Newsletter
We asked ourselves what we wanted this company to stand for. We didn’t want to just sell aircraft title services – we are passionate about customer service.
– The BATI team…
Document Check Lists – Aircraft Registration Applications
BATI’s document-filing services include reviewing the documents submitted to us for FAA filing for all the nuances and pitfalls that could keep documents from being recorded by the Registry! We advance all FAA fees and bill you for our services and the fees!
On all documents submitted to the FAA the following requirements should be carefully followed:
- N-Number, Make and Model and Serial Number should be double-checked against your aircraft title search and report for accuracy.
- All signatures must be ink signatures for all conveyances (including bills of sale and security instruments and any amendments, assignments or supplements to security instruments); also on releases, disclaimers and terminations. BATI highly suggests signing all FAA documents in BLUE ink so the Registry can see the signatures are original.
- Appropriate recording/registration fees must accompany each document.
- The title of the person signing the document must be consistent with the type of ownership.
- If you want the original of your document returned by the FAA, then submit the original and a certified copy. The FAA will retain the certified copy and return the original to you
Document Check Lists – Aircraft Bills of Sale
Contrary to what some believe, the FAA will accept non-FAA bills of sale. As long as the document clearly shows that the seller sells all right, title and interest in and to the aircraft to the purchaser, describes the aircraft by manufacturer, model number, manufacturer’s serial number and FAA registration number, lists the name of the seller (and is signed appropriately with applicable title) and the name of the purchaser, the FAA will accept typed bills of sale.
- Do not complete the “in consideration of the sum of….” portion of FAA’s bill of sale with the sales price of the aircraft. Always complete those blanks with “$10.00 & OVC”.
- Pay close attention to the “type of ownership” of the last registered owner, and make sure whoever signs the bill of sale uses a title commensurate with the type of entity selling. (Look to your title report to show the name and type of entity of the last registered owner on your pre-closing title search report).
- When exporting an aircraft, one can ask the FAA to record the bill of sale (typically not recorded by FAA but merely retained in the file, if one is submitted), simply by paying the FAA $5.00 to record the bill of sale and asking them to do so! BATI recommends always filing a bill of sale with the FAA when you sell the aircraft to a foreign individual or entity and it will be removed from the U.S. Registry. That clearly shows that you are “out of title” and can lead interested parties to the new owner.
- Show the entire name and address of the purchaser in the purchaser’s block of the bill of sale form; show the entire name of the seller in the seller’s block.
- Make sure the name of the purchaser agrees with the name on the Aircraft Registration Application…they should be identical.
- When working with Cape Town equipment always insist on receiving an FAA bill of sale and a Warranty Bill of Sale. BATI has both forms available if you need them. The Warranty Bill of Sale should completely describe the airframe and any engines that are sold with the airframe. You can file the FAA bill of sale with the Registry as your evidence of ownership, and retain the Warranty Bill of Sale for your records.
BATI Pot Pourri