The FAA Aircraft Registration Process for a Financed Aircraft

When you finance an aircraft, the Federal Aviation Administration (FAA) needs to know two things: who owns the aircraft, and who has a financial interest in it. The FAA aircraft registration process is designed to record this information publicly, and it's a critical part of any financed transaction.

Key FAA Documents

Your escrow agent will manage the filing of several key documents with the FAA Civil Aircraft Registry:

• AC Form 8050-2: Aircraft Bill of Sale: This is the official document that transfers legal ownership from the seller to you, the buyer.
• AC Form 8050-1: Aircraft Registration Application: This is your formal application to have the aircraft registered in your name (or your LLC's name).
• The Security Agreement: This is the legal document that establishes the lender's lien (their security interest) on the aircraft. It gets filed alongside the registration documents.

How the Escrow Agent Manages the Process

You will sign these documents during the closing process. Your escrow agent will then submit them to the FAA in the proper order. They will not release funds to the seller until they have confirmation from the FAA that the new registration and the lender's lien have been successfully recorded. This protects both you and the lender, ensuring that the ownership and financial interests are legally documented at the federal level.