|
What is a clear title?
A clear title shows you that there are no liens in the FAA aircraft-records.
The aircraft records contain all of the ownership and security documents that have been filed with the FAA. Most states authorize mechanic liens. These will
normally be filed with the FAA.
Have an attorney or a qualified aircraft title search company conduct the
search. A list of title search companies can be found at Title Search Companies and Law Firms.
Only a through examination of the aircraft's records will secure an ownership history and determine if there
are any outstanding liens or mortgages. This step will help avoid a delay in registering your new aircraft.
The Pre-Buy Inspection
It's important to have a mechanic to perform a thorough Pre-Purchase or Pre-Buy Inspection. It is possible to
locate a local mechanic to conduct the pre-buy, however, a better ideas is to pay to have the aircraft delivered to
your local mechanic. Your local mechanic will be the person conducting future inspections and is your best judge
to confirm if the plane is "as represented" by the seller. Your mechanic has your best ineterst in mind. The best
pre-buy inspection is a complete annual inspection, but that is not practical. Expect to pay $500 - $800 on a C-182 for the mechanic to review:
- Cylinder compressions, oil analysis
- Paper trail, logbooks, maintenance records, weight and balance and 337's
- Outstanding and reoccurring ADs
- General condition & installed equipment operation
- Corrosion
Your pre-buy inspection will usually find small discrepancies. The seller normally pays for discrepancies of
an airworthy nature, un-airworthy items are negotiated. But remember, the mechanic will tell you what he sees
according to what you ask. He is not responsible or liable for the inspection of items he does not perform. A good pre-buy inspection will give you peace of mind and satisfaction.
It is customary for the aircraft purchase to commence at the time the pre-buy inspection reaches its
satisfactory conclusion and the aircraft is found "as represented". The buyer is normally responsible for the costs to return the delivery pilot home.
Insurance Issues
Buying aviation insurance is not like buying insurance for your automobile. While there are many insurance
brokers, there are but a few aviation underwriters. Aviation insurance has its own system, and its important for new aircraft owners to understand the system. You may be tempted to
shop broker to broker, looking for a competitive bargain. What you find is that they all get quotes from the same underwriters:
There are basically eight underwriters: USAIG, AIG, Phoenix, AAU, W. Brown, London Aviation, HCC – US
Specialty, AIM – Aerospace Insurance Managers, and ACE Aerospace. (AVEMCO is the only underwriter that
sells policies direct.) Additionally, underwriters have their specialized areas of business. From year to year,
their emphasis will change what kind of policies they wish to write. Sometimes an underwriter will refuse to bid your policy if it is not the type of business they are currently writing.
Once the underwriter bids or declines to bid your policy, additional brokers are locked out. One one broker
may represent you to the underwriters. The second broker you contact will call the same underwrites. So you see, shopping around offers no advantage.
And, its important to start with an established aviation broker that will represent your needs properly. A
broker who is not specialized in aviation, will probably represent you improperly to the wrong underwriter and
will cost you a higher premium. Your local broker may even get you locked out from part of the market!
Get a referral to find the best broker, the first time. Airsure, Ltd. has experience working with many brokers.
For example, if you are a new pilot with little experience, they would suggest a specific employee of a specific
insurance company to handle your case. A broker with experience in your type of aircraft can save you hundreds of dollars.
A good broker has a personal relationship with the underwriter. They have a history of writing "good risks".
They will represent you properly and obtain the best coverage and lowest premium.
|
