Selling a business jet or turboprop is a complex, multi-stage process where delays and complications can arise. A disorganized closing can jeopardize the transaction and cost both sides valuable time and money. By understanding the process and proactively preparing, you can ensure a seamless transition for all involved. This guide walks you through the essential steps for a successful business aircraft transaction.

1. Assemble Your Expert Team

A smooth closing starts long before the final paperwork is signed. The right team of professionals can guide you through the intricacies of the process.

• Aircraft Broker: A knowledgeable, trusted and reputable IADA certified broker will be your primary guide, handling marketing, buyer qualification, and negotiations.
• Aviation Attorney: Hire a lawyer specializing in business aircraft transactions. They will draft and review the purchase agreement, ensuring all clauses protect your interests.
• Escrow Agent: A neutral, third-party escrow service will hold funds and documents securely until all conditions are met. For US transactions, these agents are typically based in Oklahoma City for easy access to the FAA registry.

2. Prepare Your Aircraft and Maintenance Records

A pristine maintenance history is one of the most critical factors for a quick and successful sale. A buyer’s pre-purchase inspection is a deal-killer if it uncovers undocumented issues.

• Organize Your Logbooks: Digitize and organize your aircraft logbooks, airframe and engine records, and maintenance logs well in advance. Cloud-based logbook services can provide buyers instant, secure access, building trust and transparency.
• Conduct a Title Search: Perform your own title search with a reputable title company early on. This will reveal any outstanding liens or title encumbrances, giving you time to resolve issues that could otherwise derail the closing.
• Address Known Issues: Proactively address any outstanding airworthiness directives (ADs) or recurring maintenance issues. Don’t wait for the buyer’s inspection to uncover problems.

3. Navigate the Pre-Purchase Inspection (PPI)

The PPI is a critical juncture in the business jet closing process. Your preparation will determine if this phase goes smoothly.

• Choose a Reputable MRO: The buyer will likely select a maintenance, repair, and overhaul (MRO) facility for the inspection. A facility familiar with your aircraft model will be most efficient.
• Negotiate the Scope: Work with your broker to define the PPI’s scope in the purchase agreement. Avoid ambiguity regarding what conditions constitute an acceptable aircraft.
• Manage the Findings: Be prepared for discrepancies found during the inspection. A well-negotiated purchase agreement should outline who is responsible for addressing the findings and under what conditions.

4. Execute the Purchase Agreement

This comprehensive contract formalizes the terms of the sale and protects both parties.

• Define Delivery Conditions: Ensure the agreement clearly defines the aircraft’s delivery condition—whether “as is” or with certain items fixed.
• Specify Financial Terms: Clearly outline the purchase price, deposit, and payment schedule. Explicitly state the conditions under which the deposit is refundable or non-refundable.
• Clarify Default Provisions: Include robust default provisions that detail the steps to take if something goes wrong. This provides clarity and protects your interests.

5. Finalize the Transaction with Escrow

The closing involves the simultaneous exchange of funds and documents, managed by your escrow agent.

• Fund the Escrow Account: The buyer will wire the deposit and remaining purchase funds to the escrow account, triggering the final stages of the process.
• Submit FAA Documents: The escrow agent will coordinate the submission of all Federal Aviation Administration (FAA) closing documents, including the FAA Bill of Sale (Form 8050-2), registration application, and any lien releases.
• Final Dispersal: Once all conditions are met and the documents are submitted, the escrow agent will disburse the funds to you and any lienholders. This officially marks the transfer of ownership.

6. Post-Closing Considerations

Even after the ink is dry, a few final details ensure a smooth transition.

• Provide Aircraft Records: Ensure the buyer receives all aircraft records, including digital copies.
• Verify Title Transfer: The escrow agent will confirm the title transfer has been officially recorded with the FAA.
• Transfer Warranties and Agreements: Assign any remaining factory warranties, maintenance programs, or service agreements to the new owner.

By meticulously following these steps and working with experienced professionals, you can navigate the complexities of a business aircraft transaction and ensure a seamless, on-time closing.

At Holstein Aviation, our IADA certified professionals bring decades of transaction experience, real-time market intelligence and global reach.  We guide our clients through every step of the process, ensuring confidence and clarity in today’s dynamic environment.  If you’re preparing to sell your aircraft, Holstein Aviation is your trusted partner in business aviation.