Clouded aircraft title is not a situation that occurs very often. However, it’s a problem that shouldn’t be overlooked, and if it does come up, you should divert your full attention to solving it. Call us to solve it as soon as possible. If not executed correctly, a remaining clouded aircraft title may cause problems with thing such as airplane registration or aircraft registration renewal.
How does it happen?
The FAA database has information about every aircraft owner and every airplane. For owners, it’s quite simple because it’s mostly related to personal information and ownership history.
As for the title of an aircraft, the database is quite extensive. In the FAA registry, you can find agreements, releases, liens, and many other documents. With every purchase and sale, the FAA validates and records the documents.
If there are unreleased liens or security agreements, a clouded aircraft title is achieved. What causes the most problems is the nature of liens and agreements.
Even though liens are consensual, they still have to be recorded and validated by the FAA. Without them, neither a sale nor aircraft re-registration can happen. It’s important that they stay outstanding. But what can go wrong?
The causes and problems of clouded aircraft title
When a person is interested in buying an airplane, they cooperate with the bank. They borrow money from the bank, and the bank officially changes the ownership of the mobile property. In most cases, liens get lost either temporarily or forever. This creates problems that can hinder your aircraft severely. Without outstanding liens, you can’t obtain a plane change of address or renew any of your documents.
Unpaid taxes and unreleased files from mechanics can also contribute to clouded aircraft title. Such a situation becomes a problem whenever the aircraft switches owners. Escrow services can greatly aid in clearing all the paperwork, but many aircraft owners refuse to seek professional assistance.
As a result, they end up with legal problems on their hands. Contact us for any advisory action and to avoid a clouded aircraft title.
How to avoid and solve a clouded aircraft title
The best thing you can do to avoid this problem is to be careful with all the documents. Issues such as missing signatures and a lack of information about any owner can be easily avoided.
Keep copies of everything and hire one of our professional consultants to go over the paperwork on a regular basis. A lack of a bill in case of sale is also a common issue.
Make sure you don’t have any owed payments to either tax authorities or independent contractors like mechanics. These liens can be filed at any time and bring any release into question. Always check everything multiple times and ask your professional consultant about anything that seems wrong.
The list of issues with clouded aircraft title is never-ending. Your problems, however, don’t have to be. Visit our website or call (800) 357-0893 for professional assistance. We are well-versed in preventing and resolving clouded aircraft title issues. Don’t hesitate to plan in advance if you wish to re-register your airplane or fly abroad.