FLYING411
Discover insights, tips, and stories from the skies — from aircraft buying guides to pilot training.
Published: January 30, 2026
Buying an airplane is exciting, but one small error on your aircraft bill of sale can turn your dream purchase into a legal nightmare.
A bill of sale is the legal document that proves you own the aircraft. If it has mistakes, the FAA might reject your registration. You could lose money, time, and even the airplane itself.
The good news is that most problems are easy to prevent. Understanding what makes a bill of sale valid protects you from headaches down the road. Let's look at the legal requirements and the biggest mistakes that can invalidate your aircraft transaction.
The seven common mistakes that invalidate an aircraft bill of sale include missing signatures, incorrect aircraft identification numbers, wrong buyer or seller names, missing or inaccurate sale dates, inadequate sale price information, failing to disclose liens or encumbrances, and not filing the document properly with the FAA Registry. Each error can delay registration, create ownership disputes, or leave you without a clear title. Avoiding these mistakes requires careful attention to detail, proper documentation, and sometimes professional help from an aviation attorney or title service.
| Mistake | Why It Matters | How to Fix It |
| Missing Signatures | FAA rejects incomplete documents | Get all parties to sign before filing |
| Wrong Aircraft ID | Can't prove which plane you bought | Verify serial number against registration |
| Incorrect Names | Creates ownership confusion | Use exact legal names from IDs |
| Missing Sale Date | Can't establish ownership timeline | Include complete date of transaction |
| Wrong Sale Price | Tax and legal complications | Document actual amount paid |
| Hidden Liens | You don't own the plane free and clear | Conduct thorough title search before buying |
| Filing Errors | Registration delays or rejection | Submit correct forms to FAA Registry |
An aircraft bill of sale is a legal document that transfers ownership from one person to another. For the FAA to accept it, the document must meet specific requirements. Think of it like a recipe. If you leave out key ingredients, the dish won't turn out right.
The bill of sale must include certain information to be valid:
The FAA provides a standard form called the AC Form 8050-2. You can use this form or create your own document, but it must contain all the required information. Many people choose the standard form because it's simple and the FAA already knows it meets all requirements.
A legal bill of sale also needs to be truthful. You can't make up information or leave out important facts. For example, if there's a lien on the aircraft, you must disclose it. A lien is like a claim on the airplane by someone who lent money for its purchase. If you hide this information, the bill of sale could be invalid.
The document must be readable and clear. If the FAA can't read your handwriting or the copy is too dark, they might reject it. Using typed documents helps avoid these problems.
Finally, the bill of sale must match other documents in the transaction. If your purchase agreement shows different information than your bill of sale, you'll have problems. All your paperwork should tell the same story about who's buying what and for how much.
Aviation is different from buying a car or a house. Aircraft are regulated by federal law, and the rules are strict. The FAA tracks every airplane in the United States through a national registry. When ownership changes, the registry must be updated. If your bill of sale has errors, the FAA won't update the records. This means you can't legally fly the aircraft as its owner.
Problems with your bill of sale can cost you money. You might need to pay legal fees to fix mistakes. In some cases, you could lose the aircraft purchase completely if title problems are discovered later. Imagine spending hundreds of thousands of dollars on a plane, only to find out someone else has a legal claim to it.
The bill of sale is also important for insurance and financing. Insurance companies want to see a valid bill of sale before they'll cover your aircraft. If you're financing the purchase, your lender needs proper documentation to secure their loan. Without a valid bill of sale, you can't get either one.
Another reason for special attention is that aircraft transactions involve large amounts of money. Even a small training aircraft costs tens of thousands of dollars. Bigger planes cost millions. With this much money at stake, every detail matters. Red flags in an aircraft bill of sale can signal bigger problems with the entire transaction.
The bill of sale also protects you from fraud. It creates a legal record of the transaction. If the seller later claims they didn't sell the aircraft or says you paid a different price, the bill of sale proves what really happened. This is your shield against dishonest sellers.
Aircraft have complex ownership histories. A plane might have had ten different owners over 40 years. Each transfer needs proper documentation. If any inspection of these documents shows a problem, it can affect your ownership. The bill of sale is the newest link in this chain. If it's weak, the whole chain could break.
An invalid bill of sale causes problems at several points during and after your purchase. The first issue appears when you try to register the aircraft with the FAA. The registration process requires you to submit your bill of sale along with other forms. If the FAA finds errors, they'll reject your application. Your aircraft can't legally fly without current registration. This means your new airplane sits on the ground while you fix the paperwork.
Title problems surface during the title search process. A title search looks at the aircraft's ownership history to make sure the seller actually owns the plane and has the right to sell it. If previous bills of sale in the chain have errors, you might not get clear title. This means there's doubt about who really owns the aircraft. No one wants to buy a plane when ownership is unclear.
Invalid bills of sale also create problems during the pre-purchase inspection. The inspector needs to confirm that the aircraft they're examining matches the one in the paperwork. If your bill of sale has the wrong serial number or registration number, the inspection report won't match your legal documents. This mismatch can stop the entire sale.
Financing becomes difficult or impossible with an invalid bill of sale. Lenders won't provide money for an aircraft when the ownership documents are questionable. They need to know that if you don't repay the loan, they can take the aircraft. Bad paperwork means they can't be sure of this.
Insurance companies face similar concerns. They need to know exactly which aircraft they're insuring and who owns it. If your bill of sale doesn't clearly establish ownership, they won't issue a policy. Flying without insurance is risky and often illegal.
Problems also emerge years after the purchase. When you decide to sell the aircraft, buyers will examine your bill of sale. If it has errors, they'll worry about title problems. This makes your aircraft harder to sell and might lower its value. Buyers want to see clean paperwork that clearly shows you own the plane free and clear.
Tax issues can arise from an invalid bill of sale. The IRS and state tax authorities use the sale price on the bill of sale to calculate taxes owed. If the document shows the wrong price or is missing information, you could face tax penalties. Some people try to list a lower price to avoid taxes. This is illegal and can lead to serious consequences.
Legal disputes become more likely with invalid bills of sale. If the seller or buyer disagrees about the terms of the sale later, a proper bill of sale settles the argument. An invalid document leaves room for interpretation and conflict. You might end up in court fighting over who owns the aircraft or what was actually agreed upon.
Understanding the specific mistakes that invalidate an aircraft bill of sale helps you avoid costly problems. Each error creates unique challenges, but all of them can derail your purchase. Let's examine these mistakes in detail so you know exactly what to watch for.
The most common error is missing signatures from the buyer, seller, or both. Every party to the transaction must sign the bill of sale. If you're an aircraft buyer, you need to sign. If the seller is a person, they need to sign. If the seller is a company, an authorized representative must sign on behalf of the company.
Some transactions involve multiple owners selling together. All owners must sign the bill of sale. If three people own the aircraft and only two sign, the bill of sale is invalid. The FAA won't accept it because not all legal owners agreed to the sale.
Signatures must be original. The FAA doesn't accept photocopies of signatures in most cases. This means both parties need to sign the actual document that gets filed. Electronic signatures are sometimes acceptable, but the rules are specific. It's safer to use original ink signatures unless you're certain electronic signatures will be accepted.
The signature must match the name on the document. If the bill of sale lists "John A. Smith" as the seller, the signature should match that name. If the seller signs as "Jack Smith," there's a mismatch. This might seem picky, but it creates doubt about whether the right person signed.
Corporate signatures require special attention. If a limited liability company or corporation is buying or selling, the person signing must have authority. The document should show their title, such as "President" or "Managing Member." Without this, the FAA can't verify the person had the right to sign for the company.
Dating the signatures matters too. The signature date should match or be close to the sale date listed on the bill of sale. If the sale date says January 15 but the signatures are dated March 1, the FAA might question which date is correct.
Every aircraft has unique identifying information. The bill of sale must list this information exactly as it appears in the FAA registry. The key details are the manufacturer, model, serial number, and registration number (also called the N-number).
The serial number is like the aircraft's fingerprint. No two aircraft have the same serial number. If you write down the wrong serial number, the bill of sale describes a different aircraft than the one you're buying. This makes the document invalid for your transaction.
Registration numbers start with the letter N in the United States. A common mistake is leaving off the N or writing the number incorrectly. For example, if the aircraft is N12345, writing "12345" without the N is wrong. So is writing "N12345A" when the actual number is "N12345."
Model designations must be exact. Aircraft manufacturers use specific model names and numbers. A Cessna 172M is different from a Cessna 172N. The letter at the end matters. If your bill of sale says 172M but you're buying a 172N, the documents don't match the aircraft. This is a huge red flag during the registration process.
Some aircraft have been modified or upgraded. The model designation might include special suffixes or codes. These must appear exactly as shown in the aircraft records. Leaving them off or adding extra information creates discrepancies.
The manufacturer's name should be complete and accurate. Writing "Cessna" when the official name is "Cessna Aircraft Company" might not seem important, but consistency matters in legal documents. Check the aircraft title and registration to see exactly how the manufacturer is listed.
Names and addresses must be exactly right on the bill of sale. This seems simple, but many people make mistakes with names. The aircraft owner selling the plane must be listed exactly as they appear on the current title to the aircraft.
If the current registration shows "Robert James Johnson," the bill of sale should use the same name. Writing "Bob Johnson" or "R. J. Johnson" creates a mismatch. The FAA can't be sure these refer to the same person.
For married couples, both names should appear if both people own the aircraft. The phrasing matters too. "John and Jane Doe" is different from "John Doe and Jane Doe" from a legal standpoint. Use the exact wording from the current registration.
Business entities need complete legal names. If a company owns the aircraft for sale, use its full legal name as registered with the state. "ABC Flying Services LLC" is different from "ABC Flying Services" or "ABC Flying Services, LLC." The exact spacing, capitalization, and punctuation should match the company's formation documents.
Addresses must be current and complete. The FAA wants street addresses, not just city and state. Post office boxes are acceptable, but street addresses are better. The address should match what's on file with the FAA for the current owner.
International addresses for foreign buyers require special formatting. If you're buying an aircraft as a non-U.S. citizen, the address format must follow U.S. postal standards as much as possible. This helps the FAA process the paperwork correctly.
Trust names need special attention. If the buyer or seller is a trust, the exact trust name and date must appear. "The Smith Family Trust dated January 1, 2020" must be written exactly that way. Leaving out the date or changing the wording makes the document invalid.
The sale date tells everyone when ownership changed hands. This date must be accurate and match other documents in the aircraft transaction. The sale date affects insurance coverage, aircraft registration deadlines, and tax calculations.
Some people leave the date blank, planning to fill it in later. This is a mistake. The date should be filled in when the transaction closes. Both parties should agree on the date and write the same date on all documents.
The date format matters for clarity. Writing "3/4/2024" could mean March 4 or April 3, depending on whether you use U.S. or international date formats. Writing "March 4, 2024" or "4 March 2024" removes all doubt.
The sale date should match the date on the purchase agreement and other closing documents. If your purchase agreement says the sale closes on May 15, but the bill of sale shows May 20, there's a discrepancy. This raises questions about when ownership actually transferred.
Some transactions take time to complete. The date when you agree to buy the aircraft might be different from the date when money changes hands and the date when you file paperwork with the FAA. The bill of sale should show the date when the sale actually closed, not when you started negotiations.
Backdating documents is illegal. Some buyers and sellers try to use an earlier date to avoid new regulations or taxes. This is fraud. If discovered, both parties could face legal penalties. Always use the true date of the transaction.
Future dates don't work either. You can't date a bill of sale for next week and file it today. The date must reflect when the transaction actually happened.
The sale price is a critical part of the bill of sale. The FAA requires you to list the amount paid for the aircraft. This figure must be accurate and complete. The IRS and state tax authorities also use this information.
Some people try to list "$1 and other good and valuable consideration" as the sale price. While this phrase is common in some legal documents, it's not adequate for an aircraft purchase. The FAA wants to know the actual sale price. Leaving it vague creates problems.
The price should be written as a number and spelled out in words. For example, "$150,000.00 (One Hundred Fifty Thousand Dollars)." This double entry prevents confusion if handwriting is unclear. If the two don't match, the FAA won't know which is correct.
Currency matters in international transactions. If you're paying in foreign currency, the bill of sale should note this. However, converting to U.S. dollars on the document helps the FAA understand the transaction value. Include both the foreign amount and the U.S. dollar equivalent.
Some buyers and sellers try to list a lower price than what was actually paid. This is tax fraud. It can result in serious penalties including fines and criminal charges. Beyond the legal problems, it creates a false record of the aircraft's value. This affects future sales, insurance, and appraisal values.
Trade-in transactions need special handling. If you're trading your old aircraft plus cash for a new one, the sale price should reflect the total value. The bill of sale might need to explain that the price includes a trade-in valued at a certain amount plus cash.
Gifts require different handling. If you're giving the aircraft as a gift (common in family transfers), the bill of sale should clearly state it's a gift. The FAA has specific forms for gift transfers. Don't list a sale price if no money changed hands.
A lien is a legal claim on the aircraft by someone who provided financing or services. If the current owner took out a loan to buy the aircraft, the lender has a lien. This lien must be paid off and released before the aircraft can be sold with clear title.
The bill of sale should state whether there are any liens or encumbrances on the aircraft. If the title is clear, the document might say "free and clear of all liens and encumbrances." If there are liens, they must be disclosed.
Many aircraft purchases happen with the buyer taking over existing financing. This is called assuming the mortgage or loan. If this is your situation, the bill of sale needs to clearly state that the sale is subject to the existing lien. The aviation finance company must approve the transfer.
Some liens are hidden. A mechanic who did work on the aircraft might have filed a mechanic's lien if they weren't paid. A title search discovers these hidden claims. If the search finds liens the seller didn't disclose, the sale might need to be restructured or canceled.
Title defects are problems with the ownership history. Maybe a previous sale wasn't properly recorded with the FAA registry. Maybe there's a dispute about who really owned the aircraft at some point. These problems affect title transfer and must be resolved before the sale closes.
Some sellers don't own the aircraft outright. They might own it with a business partner or spouse. All owners must agree to the sale. The bill of sale should list all current owners as sellers. If only one owner signs, they can't convey title to the entire aircraft.
Working with an aircraft title service helps identify these problems early. These companies specialize in searching aircraft records and ensuring clean transfers. They'll find liens and title problems before you complete the purchase. Many buyers also get title insurance to protect against undiscovered problems.
An aviation attorney can review the bill of sale and related documents. They'll spot title problems that might not be obvious to buyers and sellers. The attorney's fee is small compared to the cost of buying an aircraft with title defects.
Even a perfect bill of sale causes problems if you don't file it correctly with the FAA Registry. The registry is located in Oklahoma City and processes all aircraft registration documents. They have specific requirements for how documents must be submitted.
The bill of sale must be filed along with other documents. These include the registration application (AC Form 8050-1), the previous registration certificate (if available), and any lien releases. Missing any required document delays processing.
The FAA form 8050-2 is the standard bill of sale form. If you use this form, fill it out completely. Don't leave blank spaces. If a section doesn't apply to your transaction, write "N/A" or draw a line through it. Empty spaces make the FAA question whether you forgot something.
Timing matters when filing. You must file with the FAA within a certain time after the sale closes. Delays can cause your registration to lapse. Flying with expired registration is illegal and can result in penalties.
Some buyers forget to file the bill of sale at all. They think having the document is enough. It's not. Until the bill of sale is filed and the FAA updates its records, you're not the official owner of the aircraft in the federal registry.
Document quality affects processing. The FAA needs clear, readable copies. If you're mailing documents, use clean white paper and black ink. Faded copies or documents on colored paper might be rejected. Many people now file electronically when possible to avoid quality issues.
You need to file in the right order if there are multiple transactions. If you're buying from someone who just bought the aircraft, both bills of sale must be filed. The first transfer must be processed before the second can be approved. This is part of maintaining the chain of title.
Due diligence means checking that all previous sales were properly recorded. If you discover gaps in the registration history, they need to be fixed before your purchase can be recorded. This might require tracking down previous owners to get missing documentation.
Aircraft brokers often handle filing for their clients. If you're working with a broker, confirm they'll file the bill of sale. Get a copy for your records. Some brokers are excellent at this; others forget. Don't assume it's been done unless you receive confirmation from the FAA.
The filing fee must be included. The FAA charges a small fee to process registration documents. If you don't include payment, they'll return your paperwork unprocessed. Check the current fee amount on the FAA website before filing.
Purchasing an aircraft involves many steps, and proper documentation ties them all together. The bill of sale is the heart of the transaction. Get it right, and everything else falls into place. Make any of these seven mistakes, and you'll face delays, extra costs, and legal headaches.
Beyond the bill of sale itself, successful aircraft sales require attention to many related documents and processes. Smart buyers focus on several areas to protect their investment.
A pre-purchase inspection is essential. This detailed examination by qualified mechanics checks the aircraft's condition. The inspection covers the airframe, engine, avionics, and all systems. Problems discovered during inspection can affect the sale price or even cancel the deal. The inspection report becomes part of your aircraft's records and affects its value.
Buying a plane through a dealer offers different protections than private sales. Dealers often handle paperwork and might offer warranties. Private sales require more due diligence from buyers. Both paths can work well if you know what to expect.
General aviation aircraft have detailed maintenance records. These records show all work done on the aircraft over its lifetime. Buyers want to see complete records with no gaps. Missing logs are major red flags. They make it hard to verify the aircraft's condition and history. Some potential aircraft purchases should be rejected due to poor records.
Damage history must be disclosed. If the aircraft was in an accident or incident, this information should be in the records. Major damage affects value and might impact airworthiness. Some buyers won't consider aircraft without complete accident history.
Repairs and maintenance must meet FAA standards. All work should be documented with the mechanic's signature and certificate number. An independent inspection facility can verify that maintenance was done correctly. This protects you from hidden problems.
A pre-buy inspection differs slightly from an annual inspection. The pre-buy focuses on finding problems that affect the purchase decision. An appraiser might also examine the aircraft to determine its market value. This helps ensure you're paying a fair price.
The buying process includes reviewing the aircraft's complete history. This means examining all registration changes, repairs and maintenance records, and any modifications. Federal Aviation regulations require certain modifications to be approved and documented.
Many aircraft change hands every year. Each transaction needs proper documentation. Some of these are simple transfers; others involve complex arrangements with multiple parties. Understanding the process helps you navigate your own purchase.
Financing an aircraft adds complexity to the transaction. The lender needs to file a security interest with the FAA. This lien protects the lender until you pay off the loan. The bill of sale and loan documents must coordinate properly.
An aircraft broker can help manage these details. Good brokers know the requirements and handle much of the paperwork. They also have access to potential problems in aircraft they represent. However, you should still understand the process and verify the broker's work.
Aviation law is specialized and complex. Besides the bill of sale, you might need operating agreements, lease agreements, or partnership documents. Each situation is unique. An aviation attorney ensures your legal rights are protected throughout the transaction.
Working with an aircraft title company provides additional security. These companies research the aircraft's history, verify ownership, and ensure all documents are correct. They might also offer escrow services to hold funds until the transaction completes. Using aircraft escrow services protects both buyers and sellers.
Title insurance protects against hidden defects in the ownership history. If someone makes a claim on the aircraft after you buy it, title insurance covers your legal defense and potential losses. This insurance is relatively inexpensive compared to the aircraft's value.
The buying and selling process often takes weeks or months. During this time, maintain clear communication with all parties. Document everything in writing. Verbal agreements don't hold up if disputes arise.
Understanding these seven mistakes and how to avoid them protects your investment. Preparing an aircraft for sale from the seller's side requires equal attention to detail. Both parties benefit when the transaction is handled correctly.
For buyers considering training aircraft like a Cessna 172, these same principles apply. Even small aircraft require proper documentation and due diligence. Popular models often have more buyers, which means you need to act fast while still being thorough.
First-time buyers should pay special attention to every detail. The process seems overwhelming at first, but taking it step by step makes it manageable. Your first aircraft purchase teaches you lessons that help with future transactions.
Aircraft acquisition is a significant financial and legal undertaking. The bill of sale must be complete and accurate. It's the most important document for establishing ownership. Get it right, and you'll enjoy your aircraft for years to come. Make mistakes, and you'll face problems that could take months or years to resolve.
The buyer and seller both benefit from understanding these requirements. Clean documentation makes the transaction smoother and faster. It also protects both parties from future disputes and legal problems.
A valid aircraft bill of sale is the foundation of aircraft ownership. These seven mistakes can invalidate your purchase and create serious legal and financial problems. Missing signatures, incorrect aircraft information, wrong names, inaccurate dates, improper sale prices, undisclosed liens, and filing errors all jeopardize your transaction.
The good news is that these mistakes are preventable. Take time to review every detail. Use the FAA's standard forms when possible. Work with professionals who understand aircraft transactions. Verify all information before signing anything. A small investment in proper documentation saves enormous hassles later.
Your aircraft purchase should be exciting, not stressful. By avoiding these common mistakes, you protect your investment and ensure smooth ownership. The FAA's requirements exist to maintain a clear record of aircraft ownership and keep aviation safe. Following these rules benefits everyone in the aviation community.
Ready to make your aircraft purchase with confidence? Flying411 provides expert guidance on all aspects of aircraft transactions, from finding the right plane to completing the paperwork correctly. Our team understands the challenges buyers face and offers practical solutions that protect your investment.
Yes, you can use a handwritten bill of sale as long as it includes all required information and is clearly legible. The FAA accepts handwritten documents, but typed forms reduce the risk of rejection due to poor handwriting. Make sure every detail is accurate and complete. Use the official FAA Form 8050-2 as a guide to ensure you don't miss any required elements. Keep the original clean title documentation and make high-quality copies for your records before filing.
Errors in previous bills of sale can affect your ownership rights. You'll need to work with the FAA and possibly the previous owners to correct the chain of title. This might involve getting corrected documents from past owners or filing supplemental paperwork. An aviation attorney can help resolve complex title issues. Title insurance purchased at the time of your purchase can cover costs associated with fixing these problems.
Yes, you still need documentation even for gift transfers. The FAA requires a bill of sale or gift affidavit that clearly states the aircraft is being transferred as a gift with no money exchanged. The document must identify the aircraft, donor, and recipient correctly. Both parties must sign the paperwork. Gift transfers may have different tax implications than purchases, so consult a tax professional about reporting requirements.
Processing times vary based on the FAA's workload, but typically range from two to six weeks for paper submissions. Electronic submissions through the FAA's online system are often faster. During peak times, processing can take longer. You can check your registration application status online using the FAA's registry website. Keep copies of your submission and any confirmation numbers for tracking purposes. Expedited processing may be available in urgent situations.
You may fly the aircraft using temporary registration under certain conditions. The seller's registration remains valid for a short period after sale if you carry the bill of sale and application for registration during flight. Check current FAA regulations for specific time limits and requirements. Some insurance policies require active registration before coverage begins, so verify your insurance status before flying. Once your permanent registration certificate arrives, replace any temporary documentation.