Aircraft Bill of Sale and Closing Documents (FAA AC 8050-2)

AIRCRAFT SALE CLOSING PACKAGE

TRANSACTION OVERVIEW

This closing package documents the sale and transfer of the aircraft described below, including conveyance of title via FAA-recordable bill of sale, registration applications, and supporting documentation required by the Federal Aviation Administration (FAA), state authorities, and international registry bodies where applicable.

CLOSING CHECKLIST

Primary Transaction Documents

☐ Purchase Agreement — Contract between Seller and Buyer executed by both parties
☐ FAA Aircraft Bill of Sale (AC Form 8050-2) — Standard FAA form for transfer of aircraft title
☐ FAA Aircraft Registration Application (AC Form 8050-1) — Application for initial or transfer registration
☐ AC Form 8050-41 (Conveyance Cover Sheet) — FAA filing cover sheet for recordation
☐ Escrow Instructions — Binding escrow agreement if applicable

Title Verification & Lien Documents

☐ FAA Aircraft Records Search (Current Owner Report) — From FAA Registry confirming current registration
☐ Lien Release or Discharge (AC Form 8050-41 Release) — If aircraft subject to recorded liens
☐ Bill of Sale from Prior Owner(s) — If gap in chain of title requiring documentation
☐ Title Insurance Commitment — From approved aviation title insurer (AIC or equivalent)

Regulatory & International Registration

☐ Export Certificate of Airworthiness (EASA or equivalent) — If international delivery contemplated
☐ Cape Town Convention International Registry Certificate — If aircraft registered under Cape Town Convention
☐ IDERA Filing — Irrevocable Deauthorization and Export Request (14 CFR Part 49) if applicable
☐ State Aircraft Registration — State-specific registration forms (if required by delivery/basing state)

Financial & Tax Documents

☐ Seller Affidavit of Tax Clearance — Confirmation of no outstanding state/federal tax liens
☐ Sales Tax Exemption Certificate — If eligible (e.g., Florida non-resident exemption)
☐ Buyer Officer's Certificate — Corporate/LLC buyers; corporate resolution authorizing purchase
☐ Seller Officer's Certificate — Corporate/LLC sellers; corporate resolution authorizing sale
☐ IRS Form 4506-C — Verification of tax status (if requested by lender)
☐ Tax Impact Summary — State and federal sales/use tax analysis

Aircraft Records & Maintenance

☐ Airframe and Engine Logbooks — Complete records delivered with aircraft
☐ Component Logbooks — Rotating equipment, major repairs, overhauls
☐ Maintenance Records Index — Certification of completeness and authenticity
☐ AD (Airworthiness Directive) Compliance Log — Proof of all applicable ADs incorporated
☐ Annual Inspection Records — Most recent condition inspection documentation

Insurance & Condition

☐ Pre-Delivery Inspection Report (PDI) — Buyer's authorized mechanic inspection
☐ Broker/Appraiser Valuation Report — If funding transaction
☐ Insurance Binder — Aircraft liability and hull coverage effective at closing
☐ Buyer's Insurance Assumption Letter — Confirmation coverage transitions to buyer

Closing Administration

☐ Wire Transfer Instructions (Buyer)
☐ Wire Transfer Instructions (Seller/Escrow Account)
☐ Closing Statement — Itemized accounting of all funds, fees, and adjustments
☐ Affidavit of Delivery — Proof of aircraft possession/delivery to buyer

AIRCRAFT IDENTIFICATION & TECHNICAL SPECIFICATIONS

Complete the following table with aircraft identification and technical data:

FAA AIRCRAFT BILL OF SALE (AC FORM 8050-2)

SELLER INFORMATION

Seller Name(s): [________________________________]

Seller Address: [________________________________________________________]

City/State/ZIP: [________________________________]

Tax ID (Social Security / EIN): [__________________________________]

AIRCRAFT DESCRIPTION

Aircraft Manufacturer: [________________________________]

Model: [________________________________]

Serial Number: [________________________________]

FAA N-Number: N[__________]

Registration Certificate Number: [________________________________]

BUYER INFORMATION

Buyer Name(s): [________________________________]

Buyer Address: [________________________________________________________]

City/State/ZIP: [________________________________]

Tax ID (Social Security / EIN): [__________________________________]

BILL OF SALE

The undersigned Seller(s), in consideration of the sum of $[____________________] or receipt thereof, does hereby SELL, GRANT, TRANSFER, and DELIVER to the Buyer(s) named above all right, title, and interest in and to the above-described aircraft, including all equipment, parts, and accessories thereto.

The Seller(s) hereby warrant(s) that title to the aircraft is clear and free of all liens, encumbrances, and claims, except as follows:

[________________________________]

[________________________________]

AUTHORITY TO SIGN

Seller Authority:

☐ Individual(s)
☐ Corporation — Officer Name: [________________________________], Title: [________________]
☐ Partnership — General Partner: [________________________________]
☐ Limited Liability Company — Member/Manager: [________________________________]

Buyer Authority:

☐ Individual(s)
☐ Corporation — Officer Name: [________________________________], Title: [________________]
☐ Partnership — General Partner: [________________________________]
☐ Limited Liability Company — Member/Manager: [________________________________]

SIGNATURES

SELLER:

[________________________________]
Signature

[________________________________]
Printed Name

[__/__/____]
Date

WITNESS (required):

[________________________________]
Signature

[________________________________]
Printed Name

[__/__/____]
Date

BUYER:

[________________________________]
Signature

[________________________________]
Printed Name

[__/__/____]
Date

WITNESS (recommended):

[________________________________]
Signature

[________________________________]
Printed Name

[__/__/____]
Date

FAA AIRCRAFT REGISTRATION APPLICATION (AC FORM 8050-1)

COMPLETION NOTES

The buyer must submit FAA Form 8050-1 to establish new registration or transfer existing registration. Key completion items:

• Item 2 (Aircraft Type): [Single-engine / Multi-engine / Turbine / Rotorcraft] — check applicable box
• Item 3 (Manufacturer & Serial Number): Must match bill of sale exactly
• Item 4 (Registered Owner): Buyer's name and address as it will appear on Certificate
• Item 5 (Type of Owner): Individual / Partnership / Corporation / Government / Non-Profit
• Item 6 (Operator): Check if same as owner, or specify operating entity
• Item 7 (Status): New / Change of Owner / Change of Address / Other
• Item 8 (Citizenship): U.S. citizen or eligible for registration under 49 U.S.C. § 44102
• Item 9 (Class): Standard / Limited / Restricted / Provisional / Experimental / Light-Sport / Special

REPRESENTATIONS, WARRANTIES & CONDITIONS OF SALE

Seller's Representations & Warranties

1. Title & Ownership: Seller owns the aircraft free and clear of all liens, claims, and encumbrances except as disclosed in writing.

2. Authority: Seller has full authority to enter into this transaction and execute all necessary documents. If corporate/entity, all corporate approvals have been obtained.

3. Airworthiness: The aircraft is in the condition described in the Pre-Delivery Inspection report dated [__/__/____], and Seller makes no warranties of airworthiness or fitness for any particular purpose except as expressly stated.

4. Logbooks & Records: All airframe, engine, and component logbooks are complete, authentic, and available for delivery. No records have been altered or falsified.

5. Compliance: The aircraft complies with all applicable Airworthiness Directives (ADs) and Manufacturer Service Bulletins as of the date of delivery. All major repairs and alterations have been properly documented.

6. Liens & Encumbrances: Seller discloses the following liens, if any:

[________________________________]

Seller shall discharge all liens at closing via escrow.

7. No Known Defects: Seller is not aware of any latent defects, accident history, or material safety issues not disclosed to Buyer in writing.

Buyer's Representations

1. Eligibility: Buyer is a U.S. citizen or eligible under 49 U.S.C. § 44102 to own and register the aircraft.

2. Intended Use: Aircraft will be operated in compliance with FAA regulations and applicable state/federal law. If intended for international operation, Buyer shall obtain all required approvals.

3. Due Diligence: Buyer has conducted independent inspection and investigation and accepts the aircraft in its current "as-is" condition except as warranted above.

Condition of Sale

• Risk of Loss: Transfers from Seller to Buyer upon execution of this Bill of Sale and delivery of aircraft.
• As-Is, Where-Is: Buyer accepts aircraft in present condition (except Seller's express warranties above). No representations regarding past accidents, modifications, or service bulletins beyond AD compliance.
• Inspection Period: Buyer may conduct pre-delivery inspection for [___] days; failure to object in writing waives right to reject on inspection grounds.

REGISTRATION & RECORDATION PROCEDURES

FAA Registration (Domestic)

1. Submit AC Form 8050-1 to FAA Aircraft Registration Branch, 2200 S. 216th Street, Des Moines, IA 50325 or via online portal (eServices).

2. Processing Timeline: 10–15 business days from receipt of completed application and proof of citizenship.

3. Registration Certificate: FAA will issue Certificate of Aircraft Registration (pink slip) naming Buyer as registered owner. Valid for 3 years.

4. Address on File: Ensure correct mailing address; FAA will mail certificate and renewal notices to address on file.

FAA Recordation (Conveyance)

1. File AC Form 8050-41 (Conveyance Cover Sheet) with the bill of sale to record the transfer at FAA Registry.

2. Filing Fee: $[____] — Certified check or money order payable to "FAA."

3. Recordation Time: 10–15 business days. Recordation establishes constructive notice of Buyer's interest as of filing date (priority protection).

4. Confirmation: FAA will return file-stamped copy showing recordation date and document index number. Retain for title records.

5. Mailing Address: FAA Aircraft Registration Branch, PO Box 25082, Oklahoma City, OK 73125.

INTERNATIONAL TRANSACTIONS & CAPE TOWN CONVENTION

Cape Town Convention on International Interests in Mobile Equipment

If the aircraft is to be registered under or subject to the International Registry maintained under the Cape Town Convention (49 U.S.C. § 44107(d)):

1. International Registry Certificate: Aircraft must be registered with the Aircraft International Registry (AIR), maintained by the International Civil Aviation Organization (ICAO).

2. Timing: International Registry registration should be filed before export from the United States.

3. Priority: Any liens recorded with International Registry have priority regardless of FAA recordation date. Coordinate with lenders and lessors.

4. Export: To export aircraft internationally, obtain an Export Certificate of Airworthiness from FAA or EASA (European Union authority).

5. IDERA Filing: If aircraft will be exported and permanently removed from FAA registry, file Irrevocable Deauthorization and Export Request (IDERA) under 14 CFR Part 49.

6. Foreign Registration: Buyer shall be responsible for registering aircraft in the country of destination per that nation's aviation authority requirements.

IDERA — IRREVOCABLE DEAUTHORIZATION & EXPORT (IF APPLICABLE)

If aircraft is being exported and will not return to U.S. operation:

1. IDERA Form Filing: Submit IDERA request to FAA in conjunction with export.

2. Irreversible Action: IDERA permanently removes aircraft from FAA registry and prevents re-importation under U.S. registration. This is irreversible.

3. Timing: File IDERA after bill of sale is recorded and export preparations are complete.

4. Documentation: Provide proof of airworthiness for export from FAA or equivalent authority.

5. Notice: Buyer acknowledges the irreversible nature and consents to IDERA filing if applicable to this transaction.

☐ IDERA Filing Required — Aircraft being exported; IDERA will be filed.
☐ IDERA Not Applicable — Aircraft will remain U.S.-registered.

LIEN RELEASE & DISCHARGE

Existing Liens

Lienholder(s) Name: [________________________________]

Lien Amount: $[____________________]

Lien File Date: [__/__/____]

Lien Document: [________________________________]

Lien Discharge at Closing

1. Seller shall provide a notarized Lien Release (AC Form 8050-41 Release) from the lienholder(s).

2. Release shall be executed by authorized officer of lienholder with corporate seal (if applicable).

3. Buyer shall withhold from Seller's proceeds an amount sufficient to satisfy and discharge the lien.

4. Escrow agent shall coordinate simultaneous delivery of lien release and wire transfer to lienholder.

5. After lien is satisfied, FAA release document shall be filed with FAA Aircraft Registry to clear the title.

STATE SALES & USE TAX CONSIDERATIONS

Tax Jurisdiction Analysis

Aircraft sales are subject to sales/use tax in the state(s) where the aircraft is based, operated, or delivered. Tax implications vary significantly by jurisdiction:

Buyer's Tax Responsibilities

• Delivery Location: Aircraft will be based/registered in: [________________________________]
• Sales Tax Liability: Buyer is responsible for [____]% sales/use tax on purchase price or applicable tax in the state(s) indicated.
• Exemption Documentation: If claiming exemption (e.g., Florida non-resident), provide supporting documentation (out-of-state ID, export affidavit, airworthiness certificate).
• Tax Clearance: Seller warrants no state or federal tax liens are filed against the aircraft.

Tax Estimate

• Purchase Price: $[____________________]
• Estimated Sales/Use Tax: $[____________________]
• Total with Tax: $[____________________]

CLOSING MECHANICS & ESCROW

Escrow Arrangement

Unless otherwise agreed, this transaction shall close through an escrow agent (if parties elect escrow):

Escrow Agent: [________________________________]

Escrow Account Number: [________________________________]

Escrow Agent Contact: [________________________________]

Wire Instructions

Seller Receives Funds To:

Bank Name: [________________________________]
Account Holder: [________________________________]
Routing Number: [__________]
Account Number: [__________]
Amount: $[____________________]
Reference/Memo: [________________________________]

Buyer Sends Funds From:

Bank Name: [________________________________]
Account Holder: [________________________________]
Routing Number: [__________]
Account Number: [__________]
Amount: $[____________________]
Payee: [Escrow Agent / Seller, as applicable]

Closing Sequence

1. Day 0: Buyer delivers funds to escrow.
2. Day 1: Escrow confirms receipt of funds; Seller delivers Bill of Sale, logbooks, and aircraft.
3. Day 2: Buyer confirms receipt and satisfactory condition (or within inspection period).
4. Day 3: Seller confirms receipt of funds; Lienholder (if any) discharges lien.
5. Day 4: Escrow disburses funds to Seller (net of fees/adjustments) and releases aircraft.
6. Post-Closing: Buyer files AC Form 8050-1 and 8050-41 with FAA within 10 days.

Closing Costs & Adjustments

POST-CLOSING FAA FILING & RECORDATION

Buyer's Post-Closing Obligations

1. File AC Form 8050-1 (Registration Application) within 10 days of closing. Attach:
   - Proof of U.S. citizenship (driver's license, passport, certificate of incorporation)
   - Bill of sale (stamped/copy)
   - Proof of liability insurance

2. File AC Form 8050-41 (Conveyance Cover Sheet) with bill of sale to record transfer. Include:
   - Original or certified bill of sale
   - Recordation fee (check)
   - Cover sheet identifying parties and aircraft

3. Expected Timeline: FAA processes within 10–15 business days. Buyer will receive:
   - Certificate of Aircraft Registration (pink slip)
   - File-stamped Conveyance Document (recordation confirmation)

4. Address on File: Verify Buyer's address on registration forms to ensure FAA communications are received.

Seller's Post-Closing Obligations

1. Surrender Existing Registration Certificate to FAA (no longer valid after transfer).
2. Notify Insurance Carrier of sale and policy termination.
3. Release Logbooks & Records to Buyer per escrow instructions.
4. Confirm Lien Discharge: Verify with lienholder that lien release was filed.

AIRWORTHINESS & MAINTENANCE RECORDS

Delivery of Logbooks & Records

Seller shall deliver to Buyer at closing:

☐ Airframe Logbook — All entries from manufacture to present
☐ Engine Logbook(s) — Each engine with all overhaul and repair history
☐ Propeller Logbook(s) (if applicable) — Overhaul and repair history
☐ Component Logbooks — Landing gear, avionics, hydraulics, APU, etc.
☐ Maintenance Records Index — Organized list of all records by date and service
☐ Most Recent Annual Inspection Report — Condition inspection dated [__/__/____]
☐ Airworthiness Directive (AD) Compliance Log — Proof all applicable ADs have been completed
☐ Service Bulletin Documentation — Major SBs completed, with sign-off
☐ Repair & Alteration Forms (FAA Form 337) — All major repairs on file
☐ Supplemental Type Certificate (STC) Approvals — Documentation of any aftermarket mods

Records Authentication

Seller attests that all logbooks are original (not reproduced) and entries are authentic and accurate. Any pages added, modified, or reconstructed shall be disclosed in writing.

Seller Signature: [________________________________] Date: [__/__/____]

REPRESENTATIONS REGARDING AIRCRAFT CONDITION

Pre-Delivery Inspection (PDI)

Buyer has the right to conduct an independent Pre-Delivery Inspection by a qualified A&P Mechanic. PDI shall include:

• Visual inspection of airframe, fuselage, wings, empennage
• Engine compression and borescope inspection
• Avionics and electrical system functional tests
• Flight controls and landing gear operation
• Interior condition and equipment functionality

PDI Conducted By: [________________________________]
PDI Date: [__/__/____]
PDI Report Summary: [________________________________________________________________]

Aircraft Condition Statement

Condition Category:

☐ Airworthy — Passes annual inspection; no deferred maintenance
☐ Airworthy with Deferred Maintenance — List items: [_________________________________]
☐ Not Airworthy — Aircraft grounded; restoration required

Last Annual Inspection: [__/__/____] — Inspector: [________________________________]

Next Annual Inspection Due: [__/__/____]

Known Defects/Issues: [________________________________________________________________]

INSURANCE TRANSITION & COVERAGE

Seller's Existing Insurance

Current Insurer: [________________________________]

Policy Number: [________________________________]

Coverage Effective Through: [__/__/____]

Seller shall notify insurer of sale and request termination of hull coverage as of delivery date. Seller remains liable for any claims arising from operation prior to delivery.

Buyer's Insurance

Buyer shall obtain hull and liability insurance effective as of closing. Insurance shall name Buyer as policyholder and named insured.

Buyer's Insurer: [________________________________]

Policy Number: [________________________________]

Coverage Effective: [__/__/____]

Coverage Limits: Hull: $[____________________] | Liability: $[____________________] per occurrence

Buyer shall provide proof of insurance (binder) at closing.

RISK OF LOSS & TITLE TRANSFER

Transfer of Risk

Risk of loss transfers from Seller to Buyer upon execution of this Bill of Sale and delivery of the aircraft, whichever is later. Seller's liability insurance remains in effect until that moment.

Delivery Location: [________________________________]

Expected Delivery Date: [__/__/____]

Delivery Method: ☐ Fly-away | ☐ Ground transport | ☐ Ferry

Affidavit of Delivery

Upon taking possession of the aircraft, Buyer shall execute an Affidavit of Delivery confirming receipt in satisfactory condition. This document shall be retained by both parties for closing records.

RETENTION & DELIVERY OF RECORDS

Records to be Delivered

All aircraft records (logbooks, maintenance files, service bulletins, ADs, repair forms, etc.) shall be delivered to Buyer at or before closing. Seller shall not retain original documents.

Records Delivery Method: ☐ In person | ☐ By courier | ☐ By mail

Delivery Date: [__/__/____]

Received By: [________________________________] Date: [__/__/____]

Records Retention

Buyer agrees to maintain all aircraft records for the life of the aircraft or as required by FAA (14 CFR § 43.12 requires indefinite retention of major repairs and alterations).

DISPUTE RESOLUTION & GOVERNING LAW

Governing Law

This transaction shall be governed by the laws of the state where the aircraft will be based and registered, which is: [________________________________]

Alternatively, parties may agree to:

☐ Uniform Commercial Code (UCC) — Article 2 (Sale of Goods) with aircraft treated as goods
☐ Aviation-Specific Statutes — 49 U.S.C. Chapter 441 and 14 CFR Part 47/49

Dispute Resolution

In the event of dispute:

1. Negotiation: Parties shall attempt to resolve in good faith within 30 days.
2. Mediation (optional): If negotiation fails, parties may elect mediation before arbitration.
3. Arbitration / Litigation: Disputes shall be resolved in [State] courts of competent jurisdiction, or by binding arbitration per AAA Commercial Arbitration Rules.

SIGNATURE & EXECUTION BLOCKS

SELLER SIGNATURE BLOCK

Seller Name(s):

[________________________________]

Signature:

[________________________________]

Printed Name:

[________________________________]

Title (if corporate):

[________________________________]

Date:

[__/__/____]

Social Security / EIN:

[__________________________________]

SELLER'S WITNESS (if required):

[________________________________]

Witness Signature

[________________________________]

Witness Printed Name

[__/__/____]

Date

BUYER SIGNATURE BLOCK

Buyer Name(s):

[________________________________]

Signature:

[________________________________]

Printed Name:

[________________________________]

Title (if corporate):

[________________________________]

Date:

[__/__/____]

Social Security / EIN:

[__________________________________]

BUYER'S WITNESS (recommended):

[________________________________]

Witness Signature

[________________________________]

Witness Printed Name

[__/__/____]

Date

ESCROW AGENT SIGNATURE BLOCK (if applicable)

Escrow Agent Name:

[________________________________]

Authorized Agent Signature:

[________________________________]

Printed Name & Title:

[________________________________]

Date:

[__/__/____]

Escrow License / Authorization:

[________________________________]

SOURCES & REFERENCES

• FAA Aircraft Registration: https://www.faa.gov/licenses_certificates/aircraft_certification/aircraft_registry/
• FAA AC Form 8050-2 (Bill of Sale): https://www.faa.gov/
• FAA AC Form 8050-1 (Registration Application): FAA website (eServices portal)
• FAA AC Form 8050-41 (Conveyance Cover Sheet): FAA Registry recordation forms
• 49 U.S.C. § 44107 (Aircraft Title Recordation): https://www.law.cornell.edu/uscode/text/49/44107
• 14 CFR Part 47 (Aircraft Registration): eCFR
• 14 CFR Part 49 (Recordation of Aircraft Titles and Other Instruments): eCFR
• Cape Town Convention on International Interests in Mobile Equipment: https://www.unidroit.org/
• Aircraft International Registry (AIR): https://www.aircraftregistry.aero/
• Aviation Insurance Council (AIC) / Aerofile Title Services: Industry resources for aircraft title searches and insurance
• IRS Publication 542 (Corporations): For entity-specific tax considerations
• State Aircraft Registration Requirements: Contact your state's Division of Aeronautics or equivalent authority