Buyers Guide FLYING Magazine

Escrow and Aircraft: Why It’s Important and How It Works

This guide will walk through what you need to know about using this financial agreement to purchase an airplane.

Christina Hancock

Tuesday, April 29, 2025 at 01:14 PM ET

Verified

Edited By: Nick Torres

Due to the substantial financial stakes, people involved, and FAA requirements, it is critical to ensure that the process is smooth and secure. [Adobe Stock]

Key Takeaways:

Aircraft escrow and title companies act as neutral third parties to secure complex aircraft purchase transactions, holding funds and documents until all agreed-upon conditions are met.
They provide crucial benefits to both buyers and sellers, including mitigating financial risks through simultaneous fund and ownership transfer, managing existing liens, and ensuring proper FAA registration.
The process involves setting up escrow, managing deposits, conducting thorough title searches to verify ownership and identify encumbrances, and coordinating all necessary documentation for a compliant closing.

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Purchasing an aircraft is a significant investment, whether you’re a private individual buying a small personal airplane or a company acquiring a corporate jet. Due to the substantial financial stakes, people involved, and FAA requirements, it is critical to ensure that the process is smooth and secure. Using an aircraft escrow and title company can be a significant tool in the purchase of an aircraft. This guide will walk through what you need to know about using escrow, why it’s important, how it works, and considerations to keep in mind.

This Article First Appeared in FLYING Magazine

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Christina Hancock

Christina Hancock is the senior escrow adviser at Aero-Space Reports, bringing over 18 years of industry experience.