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Published: January 31, 2026
When you're ready to buy or sell an airplane, you'll quickly discover that the paperwork involved is just as important as the aircraft itself. The United States has one of the most active general aviation markets in the world, with thousands of transactions happening every year. Two documents stand at the center of every sale: the bill of sale and the purchase agreement.
While they might sound similar, they serve completely different purposes in the buying and selling process. Understanding how these documents work can save you time, money, and potential headaches down the road. Let's break down what makes each document essential and how they work together to protect both parties in an aviation transaction.
An aircraft bill of sale is a simple document that transfers ownership from seller to buyer after the deal closes, while an aircraft purchase agreement is a detailed contract that sets all the terms and conditions before the sale happens. The purchase agreement protects both parties during negotiations and inspections, covering everything from price to conditions. The bill of sale comes into play at closing, providing proof of ownership transfer that you'll need to register the airplane with the FAA. Both documents are required for a complete aircraft purchase—one governs the deal, the other completes it.
| Document | Purpose | When Used | Key Function |
| Aircraft Purchase Agreement | Sets terms and conditions | Before closing | Protects both parties during negotiation |
| Aircraft Bill of Sale | Transfers ownership | At closing | Provides proof of ownership transfer |
| Both Together | Complete transaction | Throughout process | Ensures legal and proper aircraft sale |
An aircraft bill of sale is a legal document that proves ownership has moved from one person to another. Think of it as a receipt for your airplane—it shows who sold it, who bought it, when the transfer happened, and for how much. The FAA requires this document before you can officially register your aircraft in your name.
The FAA bill of sale must include specific information to be valid:
You'll file this document with the FAA Office in Oklahoma City along with your registration application. The FAA provides a standard form (Form 8050-2) that many people use, though you can create your own as long as it includes all required information. Some pilots wonder if they can skip this step, but the answer is clear: without a proper bill of sale, you cannot legally register your aircraft or prove ownership.
The document also protects you from future liability claims. Once signed, it shows exactly when responsibility for the aircraft transferred from one party to another. This becomes especially important if any issues arise about the aircraft's history or condition. Keep your original bill of sale in a safe place—you'll need it not just for registration, but also if you ever sell the aircraft again. Many aircraft transactions require careful documentation, and the bill of sale is your primary proof that the deal actually happened.
An aircraft purchase agreement is a detailed contract that spells out every aspect of the sale before any money changes hands. This document is your safety net—it covers what happens if problems pop up during the inspection, who pays for what, and how to handle disagreements. Unlike the simple bill of sale, this agreement can run several pages and includes specific terms that protect both buyer and seller.
Here's what a solid purchase agreement typically includes:
The agreement gives you time to do your homework before committing fully. During this period, you can hire an A&P mechanic to thoroughly inspect the airplane, review all maintenance records, and verify that everything matches what the seller promised. If the inspection reveals problems, the agreement explains what happens next—maybe the seller fixes them, reduces the price, or you walk away with your deposit.
This document also addresses applicable laws and where disputes will be settled. Understanding aircraft purchase agreements helps you know your rights if something goes wrong. The agreement typically states that both parties will act in good faith and that all information provided is accurate. It also covers title issues, ensuring the seller actually owns the aircraft free and clear of any liens.
Most importantly, the purchase agreement protects your deposit money. Funds usually go into escrow rather than directly to the seller, staying safe until all conditions are met. The agreement specifies exactly when and how that money gets released. Your lawyer can review the terms to make sure you're protected throughout the process.
These two documents form a team that handles different parts of your aircraft purchase. The purchase agreement does the heavy lifting during negotiations and inspections, while the bill of sale finishes the job by officially transferring ownership. You can't have one without the other in a proper transaction.
The process typically flows like this:
First Stage - The Purchase Agreement
Second Stage - The Bill of Sale
The purchase agreement stays active throughout the process, protecting both parties until the sale closes. It covers what happens if the engine fails inspection or if maintenance records show a problem. The bill of sale only comes into play once everything in the agreement has been satisfied and both parties are ready to complete the transfer.
Think of it this way: the agreement is your roadmap for getting to closing, and the bill of sale is your proof that you arrived. The agreement might say "the aircraft must pass inspection and have a valid airworthiness certificate," while the bill of sale simply states "ownership transferred on this date for this price."
Both documents require proper signatures to be valid. The FAA needs the bill of sale for registration, but the purchase agreement protects you if disputes arise later. Smart pilots keep both documents filed safely with their other important aviation paperwork. Many buyers find it helpful to understand both documents before starting their aircraft search.
The AOPA recommends having both documents reviewed by someone familiar with aircraft transactions. This ensures all applicable regulations are followed and that your interests are protected throughout the deal.
Knowing when to use each document—and understanding their differences—can make or break your aircraft transactions. While both are essential, they serve distinct purposes at different stages of the process. Let's break down the key differences and explain exactly when each document comes into play.
Timing and Purpose
The aircraft purchase agreement comes first, right when you decide to move forward with buying or selling. This contract gets signed before any serious money changes hands, often right after you agree on a price. It sets up the framework for the entire deal and gives you time to complete your due diligence. The bill of sale, on the other hand, gets signed at the very end when you're ready to close the deal and transfer ownership. You might sign the purchase agreement weeks or even months before the bill of sale gets anywhere near a signature line.
Level of Detail
Here's where the documents really differ. The purchase agreement is comprehensive and detailed, covering everything from airworthiness requirements to what happens if someone finds an accident history. It might specify that the seller must provide a current airworthiness certificate, complete logbooks, and proof that the last annual inspection was properly completed. The bill of sale is bare-bones simple—just the basics about who, what, when, and how much.
Legal Protection
The purchase agreement offers extensive protection through its provisions and conditions. It might include a warranty from the seller that the aircraft's records are complete and accurate. It covers liability issues and specifies which state where the transaction happens will govern any disputes. The bill of sale offers minimal protection—it mainly proves the transfer occurred. This is why you need both documents to be effective and enforceable.
Key Elements That Differ
Let's look at what each document must contain:
Purchase Agreement Must Include:
Bill of Sale Must Include:
The Title Search and Inspection Process
When you're in the purchase agreement phase, you'll conduct a title search through the FAA registry to certify that the seller actually owns the aircraft and that no liens exist. The agreement gives you time for this crucial step. You'll also arrange for a qualified A&P mechanic to inspect the aircraft thoroughly. The agreement spells out how long you have for this inspection and what happens if problems turn up.
Many buyers choose to purchase an aircraft for flight training, and the purchase agreement is especially important in these cases. It can include specific provisions about the aircraft being suitable for training purposes and meeting insurance requirements for student pilots.
Documentation and Filing Requirements
The purchase agreement doesn't get filed with any government agency—it's a private contract between buyer and seller. You keep it for your records and might need it if a dispute arises later. The bill of sale, however, must be filed with the FAA using form 8050-2 or an equivalent document. Without filing this documentation properly, you can't get your registration certificate.
When Legal Help Is Needed
Both documents benefit from professional review, but they require different levels of legal involvement. For the purchase agreement, many experts strongly recommend having a good lawyer who is licensed in the state where the deal will happen to go over the contract and make sure it protects your interests. The AOPA offers a legal services plan that includes contract review for members. You can also find a template through the AOPA website, though you should have a real attorney customize it for your specific situation.
The bill of sale is more straightforward and often uses the standard FAA form, but having your lawyer review it ensures everything is correct. Understanding aircraft escrow and bills of sale helps prevent costly mistakes. A reputable aviation attorney can spot problems that might cause issues when you try to register your aircraft.
Aviation Law Considerations
Both documents must comply with aviation law and FAA regulations. The purchase agreement needs to address how the transaction will take place and ensure both parties follow proper procedures. It should reference applicable federal regulations and state laws that govern aircraft sales. The bill of sale must meet FAA requirements to be accepted for registration purposes.
Common Mistakes to Avoid
Many buyers make the mistake of thinking a bill of sale is enough protection. It's not. Without a proper purchase agreement, you have no recourse if the seller misrepresented the aircraft's condition or if problems emerge during your inspection. The agreement may be your only protection against a lawsuit or financial loss.
Similarly, some sellers skip the purchase agreement to speed things up. This can backfire badly if the buyer later claims the aircraft wasn't as described. The agreement protects the seller's interests just as much as the buyer's.
Working With Dealers vs Private Sellers
The process differs slightly depending on whether you're working with a dealer or a private party. A dealer usually has standard purchase agreement forms and handles much of the paperwork for you. They're experienced in making sure all documentation meets FAA requirements. Private sellers might not be as familiar with the process, making it even more important to have proper contracts in place.
Understanding what makes certain aircraft popular can help during negotiations, but the purchase agreement protects you no matter which aircraft you choose. It should specify the exact condition the aircraft must be in, including any required airworthiness certificate documentation.
The Inspection and Certification Process
Your purchase agreement should detail exactly what will be inspected and by whom. A thorough pre-purchase inspection by a qualified A&P mechanic is essential. The agreement might state that the aircraft must pass this inspection before the sale proceeds. It should also certify who pays for the inspection—typically the buyer, though this is negotiable.
The bill of sale comes after the inspection is complete and satisfactory. You wouldn't sign a bill of sale until you're certain the aircraft meets the conditions outlined in your purchase agreement. Preparing an aircraft for sale involves making sure all documentation is in order, which helps the transaction move smoothly.
Price and Payment Terms
The purchase agreement details how payment will work—whether you're paying cash, using financing, or arranging a trade. It specifies the amount going into escrow as a deposit and when the full purchase price gets released. The bill of sale simply states the final price paid, serving as a receipt for the transaction.
Final Walkthrough and Closing
Before signing the bill of sale, smart buyers do a final walkthrough to certify that the aircraft is in the same condition as when they agreed to buy it. The purchase agreement should include a provision for this final check. Once you're satisfied, both parties sign the bill of sale, and ownership transfers. If you're buying a flight school Cessna 172, this final inspection is especially important given the aircraft's likely high usage.
Record Keeping
Keep both documents permanently in your aircraft files. The purchase agreement proves what the seller promised and can protect you in a dispute. The bill of sale proves you legally own the aircraft. You'll need the bill of sale to sell the aircraft in the future, and the purchase agreement provides valuable history about the transaction.
Getting Professional Help
While it's possible to handle both documents yourself, having professional help makes sense for such a major purchase. A good lawyer familiar with aviation law can review your purchase agreement and warrant that it protects your interests. They can explain legal matters in plain language and help you understand what you're signing. The AOPA provides resources and can connect you with attorneys who specialize in aircraft transactions.
Both documents work together to create a complete, legal transfer of ownership. The purchase agreement gets you safely through negotiations and inspections, while the bill of sale completes the transfer and provides your proof of ownership for the FAA registry. Understanding these differences helps you protect yourself and ensures your aircraft transaction goes smoothly from start to finish.
Buying or selling an aircraft involves more than just handing over keys and money. The aircraft bill of sale and purchase agreement work as a team to protect everyone involved in the transaction. The purchase agreement guides you safely through negotiations, inspections, and conditions, while the bill of sale provides the official proof of ownership transfer you need to register your airplane with the FAA. Both documents are essential for a smooth, legal transaction.
Don't rush through this process or try to skip steps to save time. Having proper documentation protects you from future disputes and ensures your ownership is legally sound. Consider working with professionals who understand aviation law and can review your contracts before you sign anything.
Looking for more guidance on aircraft transactions? Visit Flying411 for comprehensive resources, expert advice, and helpful tools to navigate every step of buying or selling your aircraft.
Yes, you can use a handwritten bill of sale as long as it includes all required information: buyer and seller names and addresses, aircraft description with serial number, purchase price, date, and signatures. The FAA accepts handwritten documents if they're clear and complete. However, using the official FAA Form 8050-2 or a typed version reduces errors and makes the registration process smoother.
Once you sign the bill of sale, ownership transfers to you, along with responsibility for the aircraft. This is why the purchase agreement is so important—it protects you before the sale closes. If you discover undisclosed problems after closing, you might have legal recourse based on fraud or misrepresentation, but this requires proving the seller knowingly withheld information. Always complete thorough inspections before signing any final documents.
The FAA typically processes aircraft registration documents within four to six weeks after receiving your bill of sale and application. You can check status online through the FAA registry website. During this processing time, you can operate the aircraft using the pink copy of your registration application, which serves as temporary authority for up to 90 days while waiting for your permanent registration certificate.
While not legally required, having a lawyer review your purchase agreement is strongly recommended, especially for first-time buyers or expensive aircraft. Aviation transactions involve complex regulations and significant money. A lawyer licensed in the state where the transaction occurs can spot problems, explain legal matters, and ensure your contract protects your interests. Many pilots find this investment worthwhile for the peace of mind it provides.
You can create your own bill of sale instead of using FAA Form 8050-2, as long as your version includes all required information. However, adding extra provisions or conditions to the bill of sale isn't recommended—that's what the purchase agreement is for. Keep the bill of sale simple and straightforward to avoid registration delays. Use the purchase agreement for detailed terms, conditions, and protections.