Buyers and lenders are sometimes a bit nervous about potential title issues when purchasing an aircraft.
Did the previous owner pay all of the required taxes? Is there a lien against the aircraft? Are there hidden title issues with an imported aircraft? Was the aircraft repossessed? What can you do if an aircraft has a cloud on its title?
Aircraft Title Insurance Agency works to provide peace of mind to purchasers and lenders concerned about various title concerns by issuing policies of title insurance to a new aircraft owner and/or lender. The company also assists sellers who have a cloud on the title of their aircraft that cannot be cleared, as they often have problems selling the aircraft as a result.
“Helping buyers get more comfortable with the purchase of an aircraft or helping lenders find comfort in loaning money for the purchase are the two most important aspects of our business,” says Tracey L. Cheek, Vice President of Aircraft Title Insurance Agency.
“Title Insurance facilitates closings,” Cheek continues. Title insurance does not clear a title, she explains, but a policy can insure against claims made as a result of a title cloud. It helps buyers and lenders feel more comfortable with the transaction and it is often a faster, easier and less expensive option than quieting the title. “This, in turn, helps facilitate a sale that might not otherwise have happened.”
Today’s biggest concern seems to be unpaid taxes of previous owners, Cheek says. These liens do not necessarily show up in the FAA records and people want to be protected against them. Buyers and lenders can also be concerned with the hidden risks associated with imported aircraft or with the risks of unresolved issues being reported on the title of an aircraft. “Title insurance gives our clients peace of mind that they might otherwise be lacking,” she says.
Based in Oklahoma City, Okla., Aircraft Title Insurance Agency, Inc. is an agent of First American Title Insurance Company of Louisiana, a member of the First American Family of Companies. Aircraft Title Insurance joined the National Aircraft Resale Association (NARA) in 2005.
“Our membership in the NARA organization has allowed us to foster a better understanding and acceptance of our product in the aircraft industry,” Cheek says.
For more information about Aircraft Title Insurance Agency, Inc.., visit their website at actitleins.com or call 405-843-8231.