If you've had the experience of buying a house recently, you're aware of the incredible amount of paperwork involved at the closing! By our count our last closing required 26 signatures and over 30 initialings. Even more amazing when you consider that (a) our home is worth less than many twins (and a few singles!), and (b) it's not a very mobile asset.

First, the seller should provide a lien release (if necessary) and a Bill of Sale. (If there's a problem, you can download one in Adobe PDF format here).

The first item to fill in is the price of the aircraft, where it says "For and in consideration of $___..." To preserve he confidentiality of the transaction, the FAA will accept the phrase "$1 & OVC" (Other Valuable Considerations) in this spot, and most Bills of Sale are filled out in this fashion. Most of the rest is self-explanatory, but a few other items should be noted:

First, make sure that the seller fills out and signs both copies, as the carbon between the two does not extend down to the signature line. Also make doubly sure that he signs in exactly the same manner as is shown on your title search. Omitting a middle initial, for example, is not acceptable to the FAA, and can lead to title problems when you go to resell.

In the section for the buyers name/address (you!), take care to see that you use the same name and title that you will be using for the registration. Under "title", a private individual will use "owner", while corporate purchasers will use "President" or other appropriate corporate title. Use caution here if you have a partner: the titles "partner" and "co-owner" mean very different things, and an uninformed buyer may unintentionally give his partner the right to sell the craft without his knowledge!

Once the seller has provided you with a Bill of Sale and applicable lien release(s), and you have provided him with (lots of) money, the sale is complete. Your responsibility is to file the Bill of Sale according to the instructions on the form (it only costs $5), along with the lien release. If you are financing the aircraft, this paperwork will be handled by your bank.

CAUTION- If you or the sellers bank fail to file the lien release, the FAA will still accept you as the new registered owner, but retain the lien against your aircraft! Be sure to do this, or you could be in for a rude surprise years from now, when you go to resell. (Bankers, conservative by nature and profession, often perform a second title search 1-2 months after the purchase to confirm clear title before the trail gets cold.)

Even though you now own it, you still can't fly it! It must be registered in your name. Obtain form AC 8050-1, "Aircraft Registration Application", from the FAA, and complete it according to the attached instructions. Retain the pink copy and place it in the airplane: it will serve as a temporary registration until you receive the permanent one in the mail. (This usually takes twice as long as stated, so don't get nervous.) The FAA has made available full registration instructions here.

You should also have pre-arranged insurance for your new toy. This should be activated by phone or fax the moment that the Bill of Sale is signed.

True Story: We once saw a buyer purchase a Cessna 340 that was parked on the ramp at a major metropolitan airport. While the buyer and seller were inside the terminal having lunch and completing the transaction, a thunderstorm moved in rapidly. When the new owner returned, he discovered that his 340 had blown directly into a parked Cessna Caravan, creating an expensive hole in the Caravan's fuselage. No one was ever able to determine who owned the aircraft at the time of impact, but everyone was insured. Make that phone call!

You are now the owner of a registered, insured, personal aircraft.
Please fly it safely!