Acting as a neutral party, the escrow agent’s position is to coordinate with the purchaser, seller, broker (if any), and lending institutions to ensure the protection of each party’s interest throughout the course of the transaction.

      To open an escrow account, we must be provided with the registration number, make, model, and serial number of the aircraft, along with a complete description of each of the engines and propellers if applicable. Any contracts and information regarding the purchaser and seller should be supplied, including names and telephone numbers. A title search of all collateral will then be completed, which reflects the name of the registered owner and any outstanding liens or encumbrances on title.

      Deposits are typically wire transferred and held in an escrow account pending closing. Funds are held under the instructions of the transferring party only and are considered to be refundable until the depositor has executed an agreement stating otherwise.

      The International Registry went into effect in March, 2006. It applies to all aircraft capable of being configured with 8 seats or more, helicopters of 5 seats or more, and engines rated 550 shp and above. If your aircraft meets any of these specifications, you should review the attached information regarding International Registry Procedures.

      Originally executed documents, including a Bill of Sale, Lien Releases, and any other documents deemed as necessary to transfer clear title, should be submitted by the seller and secured party(ies). A letter of instructions should accompany the documents stating the amount due each party and wire transfer instructions for payment of proceeds. The purchaser must execute and submit an Application for Registration.

      Upon escrow’s receipt of all documents necessary to transfer clear title, the transaction is in position to close. The purchaser should wire transfer the balance of funds required for closing into the escrow account. It is suggested that the wire transfer be initiated at least one day in advance of the scheduled closing in order to prevent any delays.

      Once all terms of the contract have been fulfilled and delivery of the aircraft is ready to occur, the purchaser/depositor must send via fax or e-mail written instructions authorizing the release of funds from escrow. Upon receipt of this authorization, the wire transfers are initiated to pay any outstanding liens, with the balance of proceeds being remitted pursuant to the seller’s instructions.

      Now, all documents, which have been previously reviewed and prepared, are ready to be filed with the Federal Aviation Administration. Upon completion of recordation, the FAA will forward a permanent Certificate of Registration to the new owner. This certificate will replace the “pink” copy of the application and must remain in the aircraft in order for the owner to legally fly within and outside of the United States.

      Should you have any questions or need assistance, please do not hesitate to contact our office. Our staff will gladly assist you with any queries.

Sincerely,

Leda Francis
President

©2010 JetStream Escrow and Title Service Inc