Buying or selling an airplane is not like picking up a used couch from a garage sale. You can't just hand over cash, shake hands, and call it done. The aircraft transaction process has strict paperwork rules, and one document sits at the center of all of it: the aircraft bill of sale.

So when is an aircraft bill of sale required? The short answer is every single time ownership changes hands. Whether you're buying, selling, gifting, inheriting, or moving a plane into a trust, the Federal Aviation Administration (FAA) expects this document in the file. Without it, you can't prove you own the aircraft, you can't register it, and you can't legally fly it.

Thousands of aircraft change owners every year in the United States. Every one of those deals needs a properly completed bill of sale. The rules are clear once you know them — but a surprising number of first-time buyers and sellers don't realize how essential this piece of paper really is until they're already knee-deep in a transaction.

This guide walks you through every situation that triggers the requirement, who needs to sign, how to file, and what happens if you skip a step.

Key Takeaways

An aircraft bill of sale is required whenever ownership of an aircraft changes hands in the United States. You need one when you buy or sell a plane, receive one as a gift, inherit one, or move one into or out of a trust. The FAA uses this document — typically FAA Form 8050-1 — to process your aircraft registration application. Without a properly filed bill of sale, you cannot legally register the aircraft, prove ownership, or operate it. Filing happens through the FAA Aircraft Registration Branch in Oklahoma City, Oklahoma.

Situation	Bill of Sale Required?	Key Detail
Buying or selling an aircraft	Yes	Must be filed with the FAA along with Form 8050-2
Transferring ownership as a gift	Yes	Indicate "gift" on the form — no purchase price needed
Inheriting an aircraft	Yes	Estate executor signs; probate documents also required
Moving aircraft into or out of a trust	Yes	Trustee signs on behalf of the trust
Registering a homebuilt/experimental aircraft	Yes	Bills of sale needed for kit, engine, and major components
Corporate aircraft purchase or sale	Yes	Authorized officer signs with title and authority noted
Aircraft sale through escrow	Yes	Escrow agent typically files on behalf of both parties
Registration renewal (no ownership change)	No	Renewal confirms existing ownership — no transfer involved

What Is an Aircraft Bill of Sale?

An aircraft bill of sale is a legal document that records the transfer of ownership from one person (or entity) to another. Think of it like a title transfer for a car — except the FAA has its own specific rules about what information the document must include.

The FAA created Form 8050-1 (sometimes called AC Form 8050-1) as the standard bill of sale for aircraft. You don't have to use the FAA's form — a custom or even handwritten bill of sale can work — but using the official form is strongly recommended. It already includes every required field in the right format, which means fewer delays and fewer rejection letters from the FAA.

What Information Must Be on the Form?

Every aircraft bill of sale must include these details:

Aircraft registration number (the N-number painted on the plane)
Make and model of the aircraft
Manufacturer's serial number
Date of sale or transfer
Purchase price (or a note that the transfer is a gift)
Full legal name and address of the seller
Full legal name and address of the buyer
Signatures of all parties

Quick Tip: Double-check that the serial number on the bill of sale matches the data plate on the aircraft. A single digit off can delay your registration for weeks.

Why Do You Need an Aircraft Bill of Sale?

You might wonder if there's a way around the paperwork. There isn't. Here's why the bill of sale matters so much:

1. Legal Proof of Ownership

The bill of sale is your receipt — it proves you legitimately purchased or received the aircraft. Without it, your claim to the plane is just your word.

2. Required for FAA Registration

When you submit Form 8050-2 (the Aircraft Registration Application), the FAA requires the bill of sale as supporting evidence. No bill of sale means no registration certificate. And no registration certificate means the plane stays on the ground.

3. Protects Your Investment

A clear paper trail protects you if ownership questions come up later. If a previous owner, a lender, or a court ever challenges your ownership, the bill of sale is your first line of defense.

4. Establishes the Purchase Price

The documented price matters for state sales tax, insurance coverage, and future resale. Leaving it vague can cause headaches down the road.

5. Reveals Lien Issues

A properly filed bill of sale establishes when you bought the aircraft. If someone later claims a financial lien on the plane, your filing date helps prove you purchased it in good faith.

Why it matters in plain terms: You might have paid $85,000 for a Cessna 182, but without a filed bill of sale, the FAA has no record that you own it. You can't register it, insure it, or legally fly it. That $85,000 is sitting in a hangar collecting dust.

Who Signs the Aircraft Bill of Sale?

Both the buyer and the seller must sign the bill of sale. The seller's signature confirms they are giving up ownership. The buyer's signature confirms they are accepting it.

That sounds simple, but the details depend on who the buyer and seller actually are.

Signing Requirements by Ownership Type

Ownership Type	Who Signs	Important Notes
Individual	The owner using their full legal name	Name must match the current FAA registration exactly
Multiple co-owners	All registered owners	Every co-owner must sign — one missing signature invalidates the sale
Corporation	An authorized officer or agent	Must include their title (e.g., "President," "VP of Operations")
Trust	The trustee	Must sign on behalf of the trust with trustee authority noted
Estate (deceased owner)	The executor or administrator	Court-appointed authority required
Partnership	All partners	Unless one partner holds power of attorney for the others

Should You Get It Notarized?

The FAA does not always require notarization, but it's a smart move. A notarized bill of sale adds an extra layer of legal protection. Some states require notarization for aircraft bills of sale even when federal rules don't. When in doubt, get it notarized — it only takes a few minutes and costs very little.

Using an Escrow Service

If the transaction goes through an escrow company, the escrow agent usually coordinates the signing. They make sure everyone signs in the right places before releasing funds or transferring the aircraft. This protects both sides from incomplete or improper paperwork.

When Is an Aircraft Bill of Sale Required? Every Situation Explained

Now let's walk through every scenario where a bill of sale becomes necessary. Understanding these upfront prevents delays, legal problems, and registration headaches.

Buying or Selling an Aircraft

This is the most common trigger. Every time an aircraft changes hands through a purchase, a bill of sale must be completed and filed with the FAA Aircraft Registration Branch.

Here's the typical sequence:

Buyer and seller agree on terms.
A pre-purchase inspection is completed.
Both parties sign the bill of sale (Form 8050-1).
The buyer submits the bill of sale along with Form 8050-2 (registration application) to the FAA.
The FAA issues temporary operating authority while the permanent registration is processed.

The bill of sale should be completed on the same day the aircraft physically transfers to the new owner. It must include the exact sale date, full purchase price, and complete aircraft details.

Pro Tip: The buyer receives temporary authority to fly the aircraft after submitting the paperwork. But don't skip this step — flying an unregistered aircraft is a federal violation.

Transferring Ownership as a Gift

No money changes hands, but you still need a bill of sale. If someone gives you an aircraft as a gift, the bill of sale documents the transfer. The form should note that the aircraft was transferred as a gift rather than sold for a price.

The donor signs as the seller. You sign as the buyer (recipient). The FAA still requires the same chain-of-ownership documentation, even when the price is zero.

Inheriting an Aircraft

When you inherit an aircraft from a deceased owner, the process adds a few extra steps. The estate's executor or administrator must sign the bill of sale on behalf of the deceased. You'll also need probate court documents — typically a copy of the will, letters testamentary, or letters of administration — to prove you have legal authority to accept the aircraft.

The ownership transfers from the deceased person's name to yours through a combination of the bill of sale and the court paperwork.

Moving an Aircraft Into or Out of a Trust

Many aircraft owners use trusts for privacy, liability protection, or estate planning. Transferring a plane into a trust requires a bill of sale showing the transfer from your personal name to the trust entity. The trustee signs the registration application on behalf of the trust.

The same applies in reverse. Moving an aircraft out of a trust and back into a personal name requires another bill of sale.

Key Detail: The bill of sale and registration paperwork must identify the trust by its full legal name. The FAA requires specific language showing the trustee's authority.

Registering a Homebuilt or Experimental Aircraft

Built your own plane from a kit? You still need a bill of sale. In fact, you might need several. The FAA wants to see documentation for how you acquired the aircraft or its major components.

For example, if you bought an engine from one seller, a propeller from another, and a kit airframe from a third, you'll need a bill of sale from each. Per 14 CFR § 47.11, all ownership documentation must be clear and complete before the FAA will issue a registration certificate.

Corporate Aircraft Transactions

When a company buys or sells an aircraft, the bill of sale must be signed by an authorized representative — usually a corporate officer or a designated agent. The signature must include the person's title and their authority to act on behalf of the company.

The company's full legal name on the bill of sale must match its state corporate registration exactly. Even a small discrepancy (like "LLC" vs. "L.L.C.") can cause the FAA to kick back the paperwork.

Aircraft Sales Through Escrow

Escrow adds a layer of protection. The escrow agent holds funds and documents until both sides fulfill their obligations. The sale isn't final until the escrow agent releases everything.

In most escrow transactions, the agent holds the signed bill of sale until payment clears and the pre-purchase inspection is satisfactory. Once conditions are met, the escrow agent files the bill of sale with the FAA on behalf of the parties.

International Aircraft Transactions

Buying an aircraft from someone outside the United States? The requirements get more complex. The aircraft must be eligible for U.S. registration, and you'll need documentation proving eligibility along with the standard bill of sale.

Selling to a foreign buyer? You'll need to cancel the U.S. registration. The buyer cannot register the plane with the FAA unless they meet citizenship or residency requirements outlined in 14 CFR § 47.3.

When You Do NOT Need a Bill of Sale

It's worth clarifying what doesn't require one:

Registration renewal: Your aircraft registration expires every three years. Renewing it simply confirms you still own the plane. No ownership transfer occurs, so no bill of sale is needed.
Address changes: Moving to a new state? Just notify the FAA of your updated address. Your original bill of sale remains valid.
Name changes: If your legal name changes (through marriage, for example), you file a name-change request with the FAA — not a new bill of sale.

How to File an Aircraft Bill of Sale With the FAA

Filing isn't complicated, but doing it correctly the first time saves you from frustrating delays.

Step-by-Step Filing Process

Complete Form 8050-1 — Fill in every field. Leave nothing blank.
Complete Form 8050-2 — This is your aircraft registration application.
Include the registration fee — Check the FAA website for the current amount.
Include the previous registration certificate — If available, include the prior owner's certificate.
Mail everything to:

FAA Aircraft Registration Branch P.O. Box 25504 Oklahoma City, OK 73125

Keep copies — Make copies of every document before mailing. Better yet, scan them and save digital backups.

How Long Does Processing Take?

The FAA typically processes aircraft registration applications within 8 to 12 weeks after receiving complete paperwork. During this time, you can operate the aircraft under temporary registration authority — as long as you submitted everything correctly.

Heads up: Processing delays are almost always caused by incomplete forms or mismatched information. Triple-check everything before you mail it.

What Happens If You Don't File Properly?

Skipping or botching the paperwork creates real problems:

You can't legally fly the aircraft. Operating an unregistered plane violates federal aviation regulations.
Insurance companies may deny coverage. Most insurers won't cover an aircraft that isn't properly registered.
You could face FAA enforcement action. Fines and other penalties are on the table.
The seller stays on record as the owner. Until the FAA processes the new registration, the previous owner is still listed. That creates liability exposure for the seller and uncertainty for the buyer.

The aviation sale isn't truly complete until the paperwork is filed and processed. Don't take delivery of the aircraft without confirming that all documents are ready to submit.

Special Cases and Edge Scenarios

Some situations create unique requirements worth knowing about:

Multiple Previous Owners With Missing Records

If the aircraft passed through several owners and some bills of sale are missing, you'll need to work with the FAA to reconstruct the chain of ownership. This may involve filing affidavits or other supporting documents with the FAA records office.

Lost or Destroyed Bills of Sale

If you already registered the aircraft and later lost the bill of sale, the FAA has a copy on file. You can request a duplicate from the Aircraft Registration Branch for a small fee. If you lost the bill of sale before filing, you'll need the seller to execute a new one.

Partnership Changes

When the structure of a partnership that owns an aircraft changes — say one partner leaves and a new one joins — each change requires documentation. Even if the aircraft physically stays with the same group, the ownership structure has changed, and the FAA needs to know.

How the Bill of Sale Protects You From Problems Later

Think of the bill of sale as your ownership insurance policy. Here's how it shields you:

Protection	How It Works
Prevents seller from reclaiming the plane	Signed document proves voluntary transfer
Defends against lien claims	Filing date establishes when you took ownership in good faith
Supports insurance claims	Documented purchase price sets coverage value
Proves chain of ownership	Creates an unbroken paper trail for future resale
Evidence in legal disputes	Serves as primary exhibit in court if ownership is challenged

If you're planning to sell the aircraft someday, your bill of sale proves you acquired the plane legitimately and have the right to sell it. Buyers want to see an unbroken chain of ownership — and so does the FAA.

Checklist: Protecting Yourself During an Aircraft Transaction

Whether you're buying or selling, these steps help you avoid common pitfalls:

✅ Verify the seller is the registered owner — Check the FAA aircraft registry online before signing anything.
✅ Compare the bill of sale to the aircraft data plate — Make sure the serial number, make, and model all match.
✅ Complete a pre-purchase inspection — Do this before signing the bill of sale, not after.
✅ Use escrow for high-value transactions — Protects both buyer and seller.
✅ Consider an aviation attorney — Especially for complex deals involving trusts, corporations, or international transfers.
✅ Keep copies of everything — Physical and digital. Store them somewhere safe.
✅ File promptly — Don't sit on the paperwork. The sooner you file, the sooner you're legally protected.

Conclusion

Every aircraft ownership change in the United States requires a properly completed bill of sale. Whether you're buying your first Cessna, inheriting a family Bonanza, or moving a turboprop into a trust, the process follows the same basic pattern: fill out Form 8050-1, make sure every detail matches the aircraft, get the right signatures, and file promptly with the FAA Aircraft Registration Branch in Oklahoma City.

The paperwork isn't glamorous, but it's the legal foundation of aircraft ownership. Get it right the first time, and you'll avoid delays, liability gaps, and registration headaches.

Ready to buy or sell an aircraft with confidence? Flying411 has the resources, listings, and expert guidance you need to navigate every step of the process — from finding the right plane to filing the final paperwork. Browse aircraft listings and connect with the aviation community on Flying411 today.

Frequently Asked Questions

Can I use a handwritten bill of sale instead of FAA Form 8050-1?

Yes. A handwritten or custom bill of sale is acceptable as long as it includes all the required information — both parties' names and addresses, a full aircraft description (including serial number and N-number), the sale date, and the purchase price. That said, using the official FAA Form 8050-1 is the safer choice. The FAA processes it faster because there's no guesswork about whether required fields are missing.

How long does the FAA take to process a bill of sale and registration?

Plan for 8 to 12 weeks after the FAA receives your complete paperwork. You can fly the aircraft during this time under temporary registration authority, assuming you submitted everything correctly. Delays almost always happen because forms are incomplete or information doesn't match. Double-check everything before you send it.

What happens if I lose my aircraft bill of sale?

If the aircraft is already registered, the FAA keeps a copy. You can request a duplicate from the Aircraft Registration Branch for a small fee. If you lost the bill of sale before filing it, contact the seller and ask them to sign a new one. This is a good reason to scan and save digital copies of every aviation document you handle.

Do I need a new bill of sale if I change my name or address?

No. Your original bill of sale documents a transfer that already happened — changing your name or address doesn't undo that. For a name change, file the appropriate paperwork with the FAA (along with a new registration application reflecting your new legal name). For an address change, just notify the FAA directly.

Can I register a homebuilt aircraft without a bill of sale?

No. Even if you built the entire aircraft yourself, you still need bills of sale for the kit, engine, propeller, and any other major components you purchased. These documents prove you legally acquired the materials. The FAA requires this chain-of-ownership documentation before issuing a registration certificate for any homebuilt or experimental aircraft.

How much does it cost to file an aircraft bill of sale with the FAA?

The FAA charges a registration fee when you submit your application. As of recent years, the fee has been $5.00 for the registration application, though this can change. There's no separate filing fee for the bill of sale itself — it's submitted as part of the registration package. Check the FAA website for the most current fee schedule.

Can I buy an aircraft and register it in someone else's name?

Technically, you can pay for an aircraft and have it registered to another person, but the bill of sale must show the registered owner as the buyer. The person whose name goes on the registration is the legal owner in the FAA's eyes. If you want to maintain a financial interest while someone else operates the aircraft, talk to an aviation attorney about structuring the arrangement properly.

What's the difference between a bill of sale and a title?

Unlike cars in most states, aircraft do not have a separate "title" document. The bill of sale and the FAA registration certificate together serve as proof of ownership. The bill of sale shows how you acquired the aircraft, and the registration certificate shows who currently owns it. Some states (like Oklahoma) do issue aircraft titles at the state level, but the FAA registration is what matters for federal purposes.