FLYING411
Discover insights, tips, and stories from the skies — from aircraft buying guides to pilot training.
Published: December 22, 2025
You found a plane with paint that looks great. The price feels right. The seller hands you a simple one-page form called an aircraft bill of sale. You think it's just a quick signature and you're done. That simple piece of paper can either protect your dream or turn it into a nightmare.
One small mistake on a bill of sale can cost you tens of thousands of dollars. It can ground your plane for months. It can even mean you don't legally own what you paid for. Smart buyers know what to look for before signing anything.
Let's walk through what makes this document so important and the warning signs that should make you stop.
An aircraft bill of sale transfers ownership from one person to another, but seven major red flags can signal serious problems: missing plane details, name mismatches, hidden liens, incomplete maintenance records, undisclosed damage history, rushed deals, and sellers without proper authority. Catching these issues before you sign protects your money and keeps you legal with the FAA.
| Key Takeaway | What It Means |
| Check aircraft details carefully | Wrong numbers can delay registration for weeks |
| Verify seller name matches exactly | Even one letter off causes rejection |
| Get a professional title search | Finds hidden debts on the plane ($85-150) |
| Review all maintenance logbooks | Missing records drop value by 10-30% |
| Search accident databases | Free online check reveals crash history |
| Don't rush the deal | Pressure often hides problems |
| Confirm seller owns the plane | Verify current FAA registration matches |
Think of the aircraft bill of sale like the receipt you get at a store, except way more important. This simple paper proves you bought the plane. It shows who sold it and who bought it. The FAA needs this form before they'll say you're the legal owner.
The official form is called AC 8050-2. You can download it for free from the FAA website. Many people use this exact form, but you can also use other paperwork as long as it has all the right information.
Here's what needs to be on every bill of sale:
Most forms also include the sale price, but that's not always required. Some people write "$1 and other valuable consideration" if they want to keep the price private.
You need two original copies of this form. The buyer keeps one copy and sends the other to the FAA with the registration application. The seller should make a photocopy for their own records.
This paper creates the transaction. Once both people sign it, the ownership legally moves from one person to the other. That's when your insurance as the seller usually stops and the buyer's insurance needs to start.
Without a proper bill of sale, you can't register the plane. Without registration, you can't legally fly it. The whole deal stops until the paperwork is right.
The aircraft bill of sale does more than just record a sale. It protects both people in the transaction. It tells the FAA who owns the plane now. It creates a legal record that can help you years later if problems come up.
Let's say someone claims the plane was never really sold to you. Your signed bill of sale proves otherwise. Or maybe the seller says you didn't pay the full price. The bill of sale shows exactly what you paid.
This document also affects your valuation. When you go to sell the plane later, buyers want to see a clean chain of title. That means every bill of sale from the first owner to you needs to be correct and complete. Missing links in that chain can make your plane harder to sell.
Banks and lenders won't give you financing without seeing a proper bill of sale. They need proof that you'll actually own what you're borrowing money to buy. Aviation insurance companies also want to see this paper before they'll cover your plane.
Here's the part many people miss: mistakes on this form can cost you serious money. If the FAA rejects your paperwork, you might wait three to four weeks for approval. During that time, you can't fly the plane legally. You might be making payments on something sitting in a hangar.
Wrong information on the bill of sale can also create legal problems. Let's say the seller's name is spelled wrong. The FAA might think the real owner never sold the plane. Now you're stuck proving you own it, which could take months and cost thousands in legal fees.
The bill of sale also matters for taxes. Your state might charge sales tax on aircraft purchases. The bill of sale shows what you paid, which determines your tax bill. If the amount on the form doesn't match what you actually paid, you could face tax problems later.
Smart buyers treat this paper with respect. They check every word before signing. They make sure everything matches perfectly. They keep their copy somewhere safe, like a fireproof box or safety deposit box.
Most people buying a plane focus on the fun stuff. They picture themselves flying. They imagine weekend trips. They think about how good the plane looks. The paperwork feels boring, so they rush through it. That's when problems start.
One common mistake happens when buyers trust the seller too much. The seller seems like a nice person. They've been friendly during negotiations. So the buyer doesn't check the details on the bill of sale. They just sign it and hand over the money. Then they find out the seller's name was wrong, or the serial number didn't match, or there was a hidden lien on the plane.
Here's a real example: A buyer paid $40,000 for a plane. His friend helped with the sale. The friend never filed the bill of sale with the FAA. Later, someone else bought the plane from that friend and had problems. They sued the original seller. Why? Because the FAA records still showed him as the owner. He spent years in legal trouble over a plane he thought he sold.
Another way buyers get burned is by skipping the pre-purchase inspection. They figure the plane looks good, so why spend money on an inspection? But a good A&P mechanic with inspection authority can spot problems that cost thousands to fix. Hidden repair issues. Damaged parts. Missing airworthiness documents. These things show up in a thorough inspection but not in a quick walk-around.
Some buyers also forget to search for liens. A lien means someone has a legal claim on the plane, usually because of an unpaid loan. If you buy a plane with a lien, you might have to pay that old debt even though you already paid the seller. A professional title company search costs around $100 but can save you from a $50,000 surprise.
The rush to close a deal causes problems too. Maybe you found a great listing online. Other people are interested. The seller says they need to move fast. So you skip important steps like checking logbooks or reviewing maintenance records. You think you'll look at that stuff after you buy it. Then you discover the logbooks are missing or incomplete, which drops the market value by thousands.
Financing mistakes also trip up buyers. They assume their lender will catch any problems. But lenders care about the money, not the details. They want to know you can make payments. They don't check if the seller really owns the plane or if all the paperwork is correct. That's your job as the buyer.
Some people get fooled by working with the wrong broker. A good broker helps you through the process and protects your interests. A bad broker just wants their commission check and doesn't care if you get a problem plane. They might pressure you to skip the inspection or accept incomplete records.
The biggest mistake? Thinking the aircraft transaction is simple. Buying a plane involves more paperwork than buying a house. The FAA has strict rules. Everything needs to match perfectly. One small error can ground your new plane for weeks while you fix the paperwork.
Smart buyers take their time. They check everything twice. They hire professionals when needed. They know that spending a few hundred dollars on a title search and pre-buy inspection can save them from losing everything.
Your bill of sale needs exact details about the aircraft. Look at the tail number carefully. It should start with N and match what's painted on the plane. Check the serial number too. The manufacturer stamped this number on the airframe, and it never changes.
Compare everything on the bill of sale to the current registration certificate. They should match word for word. If the bill says Cessna 172 but the registration says Cessna 172M, that's a problem. Even small differences cause the FAA to reject your paperwork.
Why does this matter so much? The FAA uses these details to track every plane in America. Wrong information means they can't match your bill of sale to the plane you bought. Your registration application gets rejected. You wait another three weeks while you fix it and resubmit everything.
Here's what to check before you sign:
If anything looks wrong, ask the seller to fix it before you sign. Don't assume you can correct it later. The FAA wants to see the original signatures on a correct form.
The seller's name on the bill of sale must match the current FAA registration exactly. Not close. Not similar. Exactly the same. If the registration says "William Robert Smith Jr." then the bill of sale needs to say "William Robert Smith Jr." You can't change William to Bill or leave off the Jr.
This seems picky, but it's crucial. The FAA needs to see that the registered owner of the aircraft is the one selling it. Any difference makes them wonder if the right person signed the form.
Companies cause even more problems. If an LLC owns the plane, the seller line should show the full legal name of the company. The person signing needs to include their title, like "Manager" or "Member." That title should match what's on file with the FAA in the LLC Statement in Support document.
Watch out for these name problems:
If you spot any mismatch, stop. Ask the seller for a copy of the current registration. Compare it line by line to what's on the bill of sale. Don't sign until they match perfectly.
For company-owned planes, ask to see the documents that prove the person signing has authority to sell. This might be an LLC operating agreement, corporate resolution, or similar paperwork. A good seller will understand why you're asking and will provide these documents.
Before you buy any aircraft, you need to know if the seller still owes money on it. Maybe they took out a loan to buy the plane. Maybe a repair shop has a lien because of unpaid work. These debts can become your problem if you don't handle them right.
A lien is a legal claim against the plane. It means someone has the right to take the aircraft if a debt isn't paid. When you buy a plane with a lien, that claim transfers to you. The bank or repair shop can come after you for money the seller owed, even though you already paid full price for the plane.
The only way to know for sure is to pay for a professional title search. A title company checks all the FAA records from the first owner to the current seller. They look for any recorded liens, mortgages, or claims. This search costs around $85 to $150, which is cheap insurance on a $100,000 purchase.
Here's what a title search reveals:
If the search shows a lien, don't panic. The seller just needs to pay it off before you close the deal. Most people handle this through escrow. You put the purchase money in an escrow account. The escrow company pays off the lien and gives the rest to the seller. This protects everyone.
Never skip the title search to save money. One hidden lien could cost you ten times what the search costs. Banks and lenders won't give you financing without a clean title anyway. Insurance companies want to see it too. Smart buyers in aviation always pay for this service.
If a seller refuses to let you do a title search, that's a huge red flag. They might be hiding something. Or they might not understand how aircraft sales work. Either way, you should walk away from the deal.
Every plane needs logbooks that show all the maintenance, repairs, and inspections. These books tell the plane's story. They prove it's been taken care of. They show it meets FAA safety rules. Without good logbooks, you can't prove the plane is airworthy.
Missing logbooks are a serious problem. Sometimes pages are torn out. Sometimes entire books disappear. This usually means someone is hiding something. Maybe there was a major crash. Maybe expensive repairs were skipped. Whatever the reason, missing logbooks can drop the plane's value by 10% to 30%.
Even if the books are there, look at what's inside. Good maintenance records include:
Vague entries are a warning sign. If you see "annual inspection completed" with nothing else, that's not enough. The A&P mechanic should list what they checked, what they found, and what they fixed. You want details like "replaced left brake pads, serviced oil, cleaned spark plugs."
Big gaps in the records raise questions too. Let's say the logbooks show regular entries for years, then nothing for two years, then entries start again. What happened during those two years? Was the plane sitting? Was someone flying it without logging maintenance? You need answers.
Watch for entries about major repairs or alterations. These should include FAA Form 337. This form documents big changes to the plane. If you see notes about a new engine or major wing repair but no Form 337, something's wrong. The work might not have been done legally.
TBO (Time Between Overhaul) matters too. Engines need to be rebuilt after a certain number of hours. If the engine is close to TBO or past it, that affects the valuation. The seller should be honest about this. If the listing doesn't mention that the engine needs a $30,000 overhaul soon, that's a red flag.
Before you commit to buying a plane, have an A&P mechanic review the logbooks. They know what to look for. They can spot problems you might miss. This usually costs a few hundred dollars but could save you from buying a plane with hidden issues.
If the seller says they lost the logbooks, you can sometimes reconstruct them by contacting repair shops and mechanics who worked on the plane. But this takes time and money. Many buyers won't touch a plane with lost logbooks at all.
Every aircraft listing should say whether the plane has damage history. The phrase "NDH" means No Damage History. If you don't see that, ask why. Some listings say "no known damage history," which is different. That means the seller doesn't know of any damage, but there might be some they don't know about.
Major crashes must be reported to the NTSB (National Transportation Safety Board). You can search their database for free online. Type in the tail number and see if anything comes up. The FAA also tracks accidents. Check both databases before you buy.
Damage history affects the market value of the plane. Even if repairs were done correctly, buyers don't want to pay full price for a plane that crashed. Insurance companies might charge more or refuse to cover a plane with major damage history. Some lenders won't offer financing on damaged planes at all.
Look for these warning signs:
If you find an accident report, that's not automatically a deal killer. Ask to see documentation of how it was fixed. Form 337 should show the repairs. An A&P with Inspection Authorization should have signed off that the work was done right. The plane should have passed inspections after the repairs were completed.
But be careful. Some sellers hide damage history by changing the tail number. The airframe serial number never changes, so search by that number too. A good pre-buy inspection by an inspection facility can spot previous damage even if the seller doesn't mention it.
The smartest move is to walk away from sellers who won't be honest about damage history. There are plenty of clean planes for sale. Why take a risk on one with a hidden past?
Aircraft sales take time. There's a lot to check. Papers to review. Inspections to schedule. Records to verify. Any seller who tries to rush you is waving a big red flag.
Scammers love creating urgency. They say things like "I have three other people interested" or "This price is only good until tomorrow." They want you to skip the due diligence steps that would reveal problems. They count on you being so excited about the plane that you don't think clearly.
Legitimate sellers understand that buying a plane is a big decision. They expect you to take time. They know you need to do a pre-purchase inspection. They won't push you to skip important steps.
Watch out for these pressure tactics:
Last-minute changes are especially dangerous. Let's say you're ready to close. Suddenly the seller says to wire the money to a different account. Or they want cash instead of using escrow. These changes often signal fraud. Criminals hack into email accounts and watch transactions. They wait until you're about to send money, then they send fake instructions hoping you won't notice.
The aviation industry has seen cases where buyers lost hundreds of thousands of dollars to this type of scam. They thought they were wiring money to the seller or escrow company, but actually sent it to criminals. Once the money's gone, it's almost impossible to get back.
Protect yourself by taking your time. Even if other buyers are interested, a good seller will give you a reasonable period for inspection and paperwork. If they won't, that tells you something about their honesty.
This might seem obvious, but it happens more than you'd think. Someone shows you a plane and offers to sell it, but they're not actually the owner. Maybe they're a friend of the owner. Maybe they're a broker without proper authority. Maybe they're outright trying to steal from you.
Always verify that the person selling is the registered owner of the aircraft on file with the FAA. You can check this online at the FAA registry website. It's free and takes two minutes. If the name doesn't match, ask questions.
There are legitimate reasons someone other than the owner might sign. Maybe the owner died and their executor is selling the estate. Maybe it's owned by a company and an officer is handling the sale. These situations are fine, but you need to see the proper documentation.
For estate sales, the executor needs what's called an "heir at law" document. This proves they have legal authority to sell the deceased person's property. For company sales, you need to verify the person signing has authority according to the company's operating agreement or bylaws.
Co-ownership creates problems too. Let's say three people own the plane together. All three need to agree to sell it. All three should sign the bill of sale. If only one co-owner signs, the other two could challenge the sale later. You'd lose the plane and your money.
Here's what to verify:
A title company search helps here too. They verify the chain of title and make sure the seller has clear ownership. They check that there are no disputes or clouds on the title to the aircraft.
If anything seems off about the seller's authority, don't complete the deal. Contact the FAA Aircraft Registration Branch at (866) 762-9434 with questions. They can tell you who the official owner is and what paperwork you need.
Smart buyers follow a checklist before they close on any aircraft. Here's your step-by-step guide to staying safe:
Step 1: Get a Professional Title Search
This is your first line of defense against red flags in the aircraft sale. A title company reviews all FAA records and creates a report. They'll tell you about any liens, the complete ownership history, and whether the seller has clear title. Budget $85 to $150 for this service. Companies like Aerospace Reports and Insured Aircraft Title Service are trusted names in aviation.
Step 2: Schedule a Pre-Purchase Inspection
Never skip this step. Find an A&P mechanic who isn't connected to the seller. Better yet, take the plane to an independent inspection facility. A thorough pre-buy inspection examines everything: the airframe, engine, avionics, and all systems. The mechanic should review the logbooks and check for proper repairs and maintenance.
This inspection typically costs $500 to $2,000 depending on how detailed it is. Some buyers pay for a full annual inspection. Yes, that's expensive, but finding a $20,000 problem before you buy saves you from buying someone else's trouble.
Step 3: Search Accident Databases
Visit the NTSB website and search for the plane's tail number. Check the FAA accident database too. Both are free. If you find reports, read them carefully. Ask the seller about what happened and how it was fixed. Compare their story to the official reports.
Step 4: Review All Maintenance Records
Sit down with the logbooks and read through them. Look for:
If something looks wrong, have your A&P mechanic take a closer look.
Step 5: Verify Aircraft Details
Compare the bill of sale to the actual plane. Check that the tail number matches. Look at the data plate for the serial number. Make sure the make and model are correct. Everything should line up perfectly.
Step 6: Confirm Seller Ownership
Search the FAA registry online. Verify the seller's name matches the current registration. If it's a company, ask for documents proving the signer has authority. Don't just take their word for it.
Step 7: Set Up Escrow
For any significant transaction, use an escrow service. The escrow company holds your money safely until all conditions are met. They verify the paperwork is correct. They make sure liens get paid. They confirm the title is clear. Only then do they release the funds to the seller.
Using escrow protects you from fraud. It creates an audit trail. It ensures everyone follows through on their promises. Most lenders require it anyway if you're using financing.
Step 8: Get Everything in Writing
Your purchase agreement should cover all the important terms. What's included in the sale? What condition is the plane in? When does ownership transfer? What happens if the inspection finds problems? Who pays for what?
Don't accept verbal promises. If the seller says they'll fix something or include extra equipment, put it in the written agreement. If it's not in writing, it doesn't exist legally.
Step 9: Schedule a Test Flight
If possible, fly the plane before you buy it. Or have a qualified pilot fly it for you. This helps verify that everything works as it should. The engine should run smoothly. The avionics should function properly. The controls should feel right.
A test flight isn't a full inspection, but it can reveal obvious problems. Strange noises. Rough running. Equipment that doesn't work. These are reasons to walk away or renegotiate the price.
Step 10: Calculate True Cost
Look beyond the purchase price. Consider what else you'll spend:
Make sure the total fits your budget. Getting a great deal on the purchase means nothing if you can't afford to fly and maintain the plane.
Some situations absolutely require professional guidance. Don't try to handle these on your own:
High-Value Transactions: Any plane costing more than $50,000 deserves professional help. The cost of a lawyer or specialist is tiny compared to the risk. They'll review the purchase agreement, verify the title, and make sure everything is legal and proper.
Complex Ownership: If the seller is a company, LLC, partnership, or trust, hire someone who understands aviation law. These deals involve extra paperwork and potential problems. You need an expert to verify that the seller has proper authority and that the transaction is structured correctly.
International Sales: Buying from or selling to someone in another country adds layers of complexity. Different rules apply. You might need to deal with customs, import/export regulations, and international registries. This isn't DIY territory.
Spotting Red Flags: If you notice any of the warning signs we've discussed, pause the deal. Hire a professional to investigate. An aviation attorney can tell you if the problem is fixable or if you should walk away.
Missing Documentation: When logbooks are incomplete or the chain of title has gaps, you need an expert to help reconstruct the records. They know how to contact previous owners, repair facilities, and the FAA to piece together the history.
Financing Complications: If you're having trouble getting approved by a lender, an aviation finance specialist can help. They understand what banks look for. They can help you structure the deal properly. They might know lenders who will work with your situation.
Appraisal Questions: When you're not sure about valuation, hire a certified aircraft appraiser. They'll give you an independent assessment of market value. This protects you from overpaying. It also helps with financing since lenders want to see an appraisal.
Professional help costs money, but it saves you from making expensive mistakes. A few hundred dollars in legal or inspection fees is nothing compared to losing thousands on a bad deal. Think of it as insurance. You hope you won't need it, but you're glad it's there if problems arise.
Buying a plane should be exciting, not scary. These seven red flags help you spot problems before they cost you money. Take your time with every aircraft purchase. Check the details carefully. Ask questions when something doesn't seem right. Use professionals for title searches and pre-buy inspections. Trust your instincts - if a deal feels wrong, it probably is.
The bill of sale might look simple, but it's one of the most important papers in the whole transaction. Getting it right protects your investment and keeps you legal with the FAA. Most sellers are honest people who just want to complete a fair sale. But even honest mistakes can cause major headaches. Following this guide helps you avoid both the mistakes and the scams.
Remember that walking away from a bad deal is always better than owning a problem plane. There will always be another aircraft for sale. Take your time. Do your homework. And when you find the right plane with clean paperwork, you'll enjoy flying it with peace of mind.
Want to make your aircraft purchase with confidence? Flying411 connects you with experienced aviation professionals who can guide you through every step of the buying process. From title searches to pre-purchase inspections, get the expert help you need to make smart decisions.
Yes, you can use any bill of sale that includes all the required information. The FAA form AC 8050-2 is preferred because it's designed to meet all the requirements, but legally you can use a different format. Just make sure it includes the aircraft details, both parties' information, the date, and proper signatures. Many people choose the FAA form simply because it's free and guaranteed to be accepted.
The sale must go through the deceased person's estate. An executor or administrator needs to be appointed by the probate court. They'll need to file special paperwork with the FAA called an "heir at law" affidavit. This proves they have legal authority to sell the deceased person's property. The process takes longer than a regular sale, usually several months, but it's definitely doable with proper legal guidance.
No, you don't need to sign in the same room at the same time. Many aircraft sales happen with buyer and seller in different states. You can mail the documents back and forth, or use a notary service to witness signatures. Some people use electronic signatures now too. What matters is that both parties sign the same form and the signatures are original or properly authenticated.
If all your paperwork is correct, the FAA typically processes it in five business days. However, if there are any errors or missing information, it can take three to four weeks or longer. That's why it's so important to get everything right the first time. You can check your registration status online at the FAA registry website using your tail number.
This depends on what's in your purchase agreement and what the problem is. If the seller made false statements or hid known problems, you might have legal recourse for fraud. If you simply missed something during your inspection, you might be stuck with it, especially if you signed an "as-is" agreement. This is why thorough pre-purchase inspections are so critical. Once money and papers have changed hands, undoing a sale is difficult and expensive.