What is Escrow?
An escrow company serves as a neutral third party to a transaction. Additionally, an aircraft escrow company can also provide services, such as coordination of lien releases, FAA application for registration, bill of sale, funds disbursements, and other critical aircraft services.
Why Use Escrow for your Aircraft Transaction?
Escrow companies protect the mutual interests of the buyer and seller, and provide oversight of the aircraft sales transaction. A great overview of escrow benefits can be found at http://www.airtitle.com/aircraft-escrow/
How Escrow Works
Once a mutual agreement is reached, the buyer wires the deposit to the escrow company. The fully executed purchase agreement which outlines the terms of the deposit and transaction will also be sent to escrow. The escrow company then becomes the central point of contact for buyer/seller/broker/dealer/attorney/lenders/etc. Once the buyer fully funds the escrow account, the funds can only be distributed in accordance with the terms of the agreement.
The seller will complete the bill of sale with original signature, and the buyer will complete the FAA application for registration (official form with carbon copy). These items should be shipped overnight to the escrow company to be filed with the FAA.
On the day of closing, the escrow company will receive the authorization to close from both parties. If all documentation and funding is in order, the funds will be wired to the appropriate parties and the documents will be filed with the FAA.
We have relationships with a variety of aircraft escrow providers, the majority of which are based in Oklahoma City, OK in order to allow for expedient dealings with the FAA. However, the company we primarily use is Aerospace Reports.
Aero-Space Reports – Aircraft Title & Escrow Services
6916 N.W. 112th Street
Oklahoma City, OK 73162