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A thief stole two airplanes with a signature and a couple of stamps
According to a criminal complaint filed in federal court, the paperwork Hughes had sent to the FAA was phony, something that only came to light when a worker at the Washington State Department of Transportation placed a routine call to the Piper’s previous owner to confirm their cancellation of the plane’s registration. The confused owner, a US Navy doctor in Gig Harbor, WA, said he hadn’t sold his plane, nor did he intend to. (qz.com) Más...Sort type: [Top] [Newest]
Buyer beware, get title insurance!
Title Insurance should be mandatory on boats and planes with titles being listed and cross referenced by aircraft serial number and current FAA registration. A seller would have to prevaldate any sale by offering the actual title for public inspection as part of any advertising he/she does to sell the plane.This might cut down on these kind of shenanigans. As always the buyer beware. Go see what your buying or hire an agent/broker to represent you if it's a long distance from your home.
Why do I need title insurance? It doesn’t cover theft. Aircraft insurance covers theft. Maybe if the FAA is going to maintain such a weak system for transfer of aircraft they could add something as simple as a notarized signature to the bill of sale.
Notory public and even record clerks are capable of errors and susceptibility to fraud. Seen it done in real estate. A buyer has had his $350k+ tied up for a year because of an illegal sale due to fraud around copy and pasting the signature page of a document. The notary is no longer in the business and never turned in her logs. It's a mess but in reality it falls on interested parties more than anyone else to protect their property.
If you own a home, title insurance is not required. If you have a mortgage from a lender, they require insurance. You have to buy a separate policy. Can you get a mortgage on an airplane?
A mortgage is simply a loan -- very common. And having a loan, or 'mortgage,' on an aircraft doesn't meant one cannot get title insurance on it.
Lenders don't require title insurance on an aircraft purchase - while they take the aircraft as collateral, the type of financing is more like a personal loan, similar to boat, recreational vehicle financing. The lender really is lending against the good credit record of the borrower.
Title insurance on an aircraft purchase protects the title - if the title is fraudulent then the title company pays out the loss.
My first aircraft purchase was financed by B of A, and four months later I had a phone call explaining that the bank had missed an unreleased bank lien from four owners ahead of me. I asked what the repercussions were if B of A could not get a lien release, and the branch manager told me that B of A would own the plane. Gulp! (It was cleared and all ended well, but it's an example).
Title insurance on an aircraft purchase protects the title - if the title is fraudulent then the title company pays out the loss.
My first aircraft purchase was financed by B of A, and four months later I had a phone call explaining that the bank had missed an unreleased bank lien from four owners ahead of me. I asked what the repercussions were if B of A could not get a lien release, and the branch manager told me that B of A would own the plane. Gulp! (It was cleared and all ended well, but it's an example).
Yes. It would be a “chattel mortgage” which is the type that a lender records to secure a lien on movable property. Title insurance would not be helpful inasmuch as it covers omissions and errors in the purchase process or subsequent disputes over, for instance, boundaries in real estate.