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Hey all, I need some advice, not having ever sold an airplane before. 72G is free and clear of all liens. What type of paperwork is required to transfer ownership? I have an FAA Bill of Sale. Common sense would tell me this is all that is required. But, using common sense today is usually the first step into trouble!

Am I going to need anything more?

Thanks,

When I bought 40J we also had a typed up sales contract saying the plane was free of liens, is sold as is and no warranties, and that it's mine, etc.

You'll probably get some good advice on this forum Bill, but it wouldn't hurt to call OK City and see what they say at the FAA.

You really should have some kind of hold harmless / release of all future liability agreement signed too. Although not ironclad, this would provide one more layer of protection for you.

The AOPA has a nice little page on what you'll need to do (membership required to access it):

Selling an Aircraft [aopa.org]

They also have a sample purchase agreement. Some good language there concerning the whole "as is, no warranties" bit:

Sample Purchase Agreement [aopa.org]

- Jeff

Don't forget to check with your STATE and local aviation agency or tax collector. Your out of state buyer should do the same, in his home state. I needed some form of receipt (signed and dated, hand written bill of sale worked) to document the purchase price of my aircraft.

Having sold two, all that you (as the seller) are required to do is the bill of sale. HOWEVER, as a prudent seller, (or buyer) I usually also start with the AOPA sample contract and modify it to my own needs.

I am a firm believer in written agreements to refresh memories after six months pass and something is no longer to a buyers liking.

The buyer will need the bill of sale and the AC registration which MUST be an original multipart form. But that is for him when he re-registers under his name. Hopefully he has done a title search (making sure that not only is the plane F/C of liens, but that the title progression is intact from all prior transfers, and that no one has placed a lien on your aircraft in error). On the last item, keep in mind that I could file a lien on your airplane today. While it would not be enforcable, I would not like to be the buyer and have to motivate a seller who has my cash in hand to clear it up. If you had someone you ticked off, they could file a lien on your airplane, and you would never know it until someone searched the records.

Same here in Georgia. Dept. of Revenue would not accept the FAA bill of sale. Of course it list a sale price of only $1.00. The seller sent me a hand written bill of sale.

The last FAA Form 8050-2 (FAA Bill Of Sale) I sent in didn't have a block for sale price. That's why Florida (and probably Georgia, too) didn't accept it for tax purposes.

In Georgia, the bill of sale would have no bearing on the value of the aircraft for property taxation.

Each year you are required to file a Form PT-50A [etax.dor.ga.gov] each year to report the equipment, times and other pertinent information about your aircraft. You are also expected to declare a Fair Market Value of the aircraft. This FMV has no relationship whatsoever to the purchase price of the aircraft. If the aircraft is worth (according to the Blue Book or other price guides) say $15,000 and you only paid, say, $10,000 due to the owner's distress or any other reason, the FMV of the aircraft is still $15,000, period. You declare a FMV value, the Assessors set a FMV and if you do not agree, you appeal the value, within the alloted time span. Failure to file a timely return prevents you from filing an appeal for that year.

In my county (Meriwether [qpublic.net]), we (I sit on the Board of Assessors) do not ask to see bills of sale or anything other than the PT-50A. The bill of sale might come into play during the appeal process, should you take the appeal to the Board of Equalization, it could be used as evidence of what you paid for the aircraft.

Charles

Another good reason to live in Florida vs. Georgia!

In Florida, we pay a one time sales/property/excise (whatever) tax on the aircraft when we first bring it to Florida (discounted at full value if you already paid sales tax in another state). So far, there is no yearly property tax on aircraft.