Registering your aircraft
it’s not as easy as it seems–and much more important than you might think
By James Wynbrandt - August 1, 2008
Registering your aircraft in the U.S. is a seemingly minor paperwork item that you may not think about during the heady hunt for a business jet. But unless the registration is properly handled, that aircraft you buy might not be legal to fly.
Subject to some exceptions, an aircraft must be registered with an appropriate aviation authority before it may be legally operated in any country. To be eligible for U.S. registration by the FAA, an aircraft must not be registered under the laws of a foreign country; must be owned by a citizen of the U.S., a citizen of another country “lawfully admitted for permanent residence” in the U.S., or a corporation that is not a citizen of the U.S. but is organized and doing business under the laws of the U.S. or a state; and must be based and primarily used in the U.S.
The good news is that registering an aircraft in the U.S. is a relatively simple and straightforward process. But there are enough potential pitfalls and daunting details–including the new international aircraft registry–to suggest that every prospective buyer would be wise to review the basics of aircraft registration.
Proving Ownership
“Under [Federal Aviation Regulations] Part 47, it is the buyer’s responsibility to make sure the aircraft is registered,” said Larry Barnhart, a technical specialist with the Pilot Information Center of the Aircraft Owners and Pilots Association. “If a broker or dealer handles the sale, the buyer should spell out in the purchase contract who has responsibility for handling the registration.” Whatever that contract stipulates, it is still the new owner’s responsibility to submit the application for registration and to make sure evidence of ownership–for example, the bill of sale–is submitted to the FAA.
Because aircraft do not have certificates of title (as vehicles do), some people believe an aircraft’s registration certificate provides proof of ownership. This is not true, according to Kenneth Mayfield, vice president and general counsel of Aero Records & Title Company in Oklahoma City. Rather it is the bill of sale that provides proof of ownership. “Consider the bill of sale for an aircraft similar to the deed for a house,” he said.
To help establish ownership, title searches (notwithstanding the lack of aircraft “certificate of titles”) are highly recommended. “We search the FAA registry for bills of sale, liens, releases and other conveyances,” Mayfield explained. In fact, if a lender finances the purchase, it will demand a title search–and for good reason. A title search ensures the paper trail of ownership is complete and that ownership is clear, or unencumbered by liens or other claims. Parties ranging from a former spouse to a maintenance facility alleging an unpaid bill can file liens against an aircraft.
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