Cross-Border Transaction Checklist

Before beginning an aircraft purchase, international buyers should establish their ownership structure (trust, LLC, or corporation), identify financing sources and obtain preliminary approval, assemble a professional team including aviation attorney, tax advisor, and insurance broker, and determine basing location and operational requirements.

This planning phase typically takes 2-4 weeks and ensures smoother execution once a specific aircraft is identified.

The Letter of Intent (LOI) establishes key transaction terms including purchase price, deposit amount, inspection scope, and timeline. International transactions should address currency of payment, wire transfer logistics, and any export/import considerations.

Key items to address in the LOI: purchase price and currency, deposit amount and escrow arrangements, pre-purchase inspection scope and location, representations and warranties, closing timeline and location, conditions precedent to closing.

Aircraft records review: complete logbooks and maintenance records, airworthiness directives compliance, service bulletin status, damage history research, engine and APU status, avionics and equipment inventory.

Pre-purchase inspection: select qualified inspection facility, define inspection scope (Phase 1-4), review discrepancy list and negotiate repairs, obtain inspection report and photographs.

Title and lien search: verify clear title, confirm no outstanding liens or encumbrances, review chain of ownership, confirm no legal disputes.

Documentation submission: completed loan application, personal financial statements, tax returns or equivalent, bank statements and references, passport and proof of residence, trust or corporate documents.

Loan approval process: lender review and underwriting, commitment letter review and acceptance, appraisal coordination, insurance requirements review.

Legal and documentation: purchase agreement review and execution, bill of sale preparation, trust agreement finalization, FAA registration documents, international documentation (apostille/legalization as required).

Financial: escrow account establishment, down payment wire transfer, lender funding coordination, proof of funds documentation.

Insurance: obtain insurance quotes, bind coverage effective at closing, ensure proper named insureds, provide certificates to lender.

Final verifications: confirm aircraft condition unchanged, verify no new liens filed, confirm insurance in force, review all closing documents.

Execution: sign all transaction documents, authorize wire transfers, file FAA documents, obtain aircraft keys and records.

Post-closing: confirm FAA filing acceptance, distribute executed documents, coordinate aircraft delivery or ferry flight, begin operational setup.