Much like selling an aircraft, the purchase of a commercial aircraft or private jet can be fraught with complexities and red tape. However, by working with one of our expert Aviation Solicitor’s you can be assured that your purchase will follow the necessary due diligence.
Our team of experts can help you plan ahead, avoiding any unforeseen issues along the way and ensure that all the necessary steps are taken quickly and efficiently.
We can guide you through the red tape and ensure that both buyer and seller are happily bound in a legal agreement, leaving both parties with complete peace of mind.
For initial legal advice get in touch with our Aviation Solicitors.
More Information on Aircraft Purchasing
For any commercial aircraft sale to go through, an Aircraft Sales Agreement will need to be in place. This is a legal contract between two business entities, where one is looking to buy an aircraft from the other.
An Aircraft Sales Agreement is a legal document which sets out all the terms and conditions of the sale, and takes into account factors such as the condition of the aircraft, and whether it complies fully with airworthiness standards.
This agreement is much like an aircraft in that it has many components. However, our Aviation Solicitors are here to ensure that nothing is missed, and that due diligence is fully undertaken.
An Aircraft Sales Agreement will usually include terms such as:
- The make and model of the aircraft
- Timeframe of delivery
- Quality standards
- Payment structure
- Schedule of responsibilities
To ensure your purchase gets off the ground, our specialist Aviation Solicitors will review the agreement and advise you throughout the process.
What’s in an Aircraft Sales Agreement?
Putting together these agreements on behalf of the aircraft seller can be laborious, but our qualified Aviation Solicitor’s make light work of this. We’ll guide you through the agreement, making sure you include everything that is necessary.
- What searches can be made against the seller?
- What if the aircraft is subject to an HP Agreement – how can you be satisfied as to transfer of title?
- What searches can be made against the aircraft?
- Information about where the handover is to take place and by what time?
Survey and Air Test
- This is an essential part of purchasing an aircraft and you will need decide how detailed you want a survey to be.
- Will you risk just paying the deposit to the seller or will you want the protection of an Escrow Service?
What if you withdraw?
- If the seller is able to sell the aircraft to another buyer, but at a lower price, can a shortfall be claimed against you?
- If the price is in a foreign currency than you will need to know how VAT is to be converted.
Will you be able to inspect the aircraft again and test fly it again?
- If so, when and what will be the arrangements?
Our Aviation Solicitors are recommended in the Legal 500 for their aviation expertise.
Q How can I finance the purchase of an aircraft?
A There are various options available for aircraft financing
- Bank debts
- Capital market loans
- Export credit loans
Q Who can register an aircraft?
A As stated in the Air Navigation Order 2016, only the following persons are qualified to hold a legal or beneficial interest by way of ownership in an aircraft registered in the UK or a share in such an aircraft:
- The Crown in right of HM government
- Commonwealth citizens
- Nationals of any EEA State
- British protected persons
- Bodies incorporated in some part of the Commonwealth and having their principal place of business in any part of the Commonwealth
- Undertakings formed in accordance with the law of an EEA State which have their registered office, central administration or principal place of business within the European Economic Area, or
- Firms carrying on business in Scotland.
Q What’s the procedure for obtaining a certificate of airworthiness?
A The applicant must provide the following to the Civil Aviation Authority (CAA):
- Details of the aircraft
- Approved organisation details
- Location of the aircraft for survey (if required)
The aircraft must be registered in the CAA Register of Civil Aircraft before the issue of any certificate of airworthiness. Applications can be completed on the CAA public website and passed on to the technical section for review.
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