Contact

Everything in life has a ‘price’. In financial terms, when selling an asset in a relatively free market, the price paid for the asset should equal the least that the selling market is willing to bear, and equally, the most that the buying market will bear.

As such, assuming the advertising is well-executed to the market and the information about the aircraft is accurately described, it is simply the price that will determine the outcome (all other conditions aside).

When a seller tries to present an aircraft to the market at an inflated price, the market will keep looking. And if the Buyer presents an offer that is unrealistically short of a fair market price, the Seller rejects their advance. It’s a ‘dance’ that could be made shorter and far less stressful, if both parties understood the real value of the asset. Try our valuation calculator today – or call us for a valuation of your aircraft. It could save you a lot of valuable time.

Aircraft sell in a matter of hours if the price is right and demand is very high. And in months or years if the price is set unrealistically or the market doesn’t value the asset. Our opinion is that striking a perfect balance would see your aircraft sold within 2-4 weeks of first being fully advertised.

Most sellers believe that employing an aircraft broker means taking the hassle out of the sale (less time and energy dealing with potential buyers), ensuring that the marketing of the aircraft is targeted to an appropriate audience – and of course, negotiating the best sales result, in less time.

And this is all largely true.

But there are so many more reasons why employing the services of an aircraft broker should be considered. The least commonly understood reason is that the broker’s main role is to act as an impartial facilitator of the agreement between the two parties. From the very first enquiry, through to settlement and final delivery of the aircraft, the broker’s key role is to identify and mitigate of the risk of errors, misunderstandings, anxieties and conflict (the potential for unwanted legal action or loss) to either party during all stages of the process.

Although the broker does not take up the legal risk if a dispute arises between the seller and buyer, the professional broker is expected to be knowledgeable and experienced in order to reduce the risks of significant disputes to almost zero. In any event, the broker also becomes a professional witness who’s presence will significantly and further reduce the likelihood of disputes being based on misinformation or distortions.

That’s correct. It’s not sales. We are in the 2020s – not the 1980’s!

The best facilitation of any agreement requires human skills; active listening – and noting and clarifying the potential areas of misunderstanding to ensure that each step of the process is undertaken impartially and fairly to both parties. Where conflict arises (and it can arise very easily) the broker needs to ensure both parties either reach further agreement, or that they terminate the agreement without (or with minimal) loss.

In short, great brokers will ensure they steer both parties away from any pitfalls along the way – and towards a smooth transaction pathway every time.

In short, no. Although there are some obvious similarities, cars and motorcycles have a far less complex regulatory / maintenance regime, generally over less number of years and with far less components involved. While some ultralight aircraft and gliders can be relatively simple, certified singles, twin engine, turbine aircraft and helicopters can have an extremely complex array of powerplant, rotor/propeller, airframe and avionics components that need to be documented, checked and properly marketed in the sale.
The need to accurately and truthfully market an aircraft for sale is important from the Seller’s perspective, and the requirement to trust but accurately verify the information provided by the seller is vitally important from the perspective of the buyer.

Everything in life has a ‘price’. In financial terms, when selling an asset in a relatively free market, the price paid for the asset should equal the most that the selling market is willing to bear, and equally, the least that the buying market will bear.

As such, assuming the advertising is well-executed to the market and the information about the aircraft is accurately described, it is simply the price that will determine the outcome (all other conditions aside).

When a seller tries to present an aircraft to the market at an inflated price, the market will keep looking. And if the Buyer presents an offer that is unrealistically short of a fair market price, the Seller rejects their advance. It’s a ‘dance’ that could be made shorter and far less stressful, if both parties understood the real value of the asset. Try our valuation calculator today – or call us for a valuation of your aircraft. It could save you a lot of valuable time.

Aircraft sell in a matter of hours if the price is right and demand is very high. And in months or years if the price is set unrealistically or the market doesn’t value the asset. Our opinion is that striking a perfect balance would see your aircraft sold within 2-4 weeks of first being fully advertised.

In general (not accounting or legal advice!) GST is only payable if the Selling entity is registered for GST and the aircraft was originally purchased with GST claimed. Export of an Australian registered aircraft means that GST is normally not chargeable. A nominal CASA fee is payable on transfer of registration but this is a once-off charge and RAAus charges a similarly nominal fee for transfer of ownership. Stamp duty or other government changes are not payable.

No. Unless the manufacturer specifies that you can. RAAus and CASA registered flight schools must be wary of this rule, which also applies to LSA private operations. This is different to rules pertaining to most certified aircraft, many of which can be operated ‘on condition’, even in flight training.

The transfer of ownership of the asset occurs when it was agreed to be transferred, but always after the contract has been fulfilled. That is, there was an offer to purchase, that offer was accepted, and consideration (in full) was received by the Seller. In some instances, a contract may provide that title (and therefore risk of damage) will transfer after full settlement, but on ‘wheels down’ at a place that has been agreed by the parties. Or perhaps ‘on delivery of keys, books and hangar access’. This means that the title would not transfer until the aircraft was accessible and the Buyer had provided access to the aircraft. These examples represent a stark reminder of the importance of always clearly agreeing the time or event that triggers the transfer of risk and title to the new owner. The implications of ignoring this point can prove very costly, particularly in relation to insurance claims and return of monies should an aircraft be damaged or destroyed in transit, not yet delivered.

For CASA registration transfers, a Form 027 Part 1 is required to be filed by the Seller and a 027 Part 2 is required to be filed by the Buyer within 14 days after the completion of the transfer of ownership. These forms can also be filled in online. CASA can take a number of weeks to affect the transfer, so it is advisable that Airservices and AvData charges incurred following the date of settlement, be forwarded to the Buyer for payment.

For RAAus, there are two forms that need to be filed (by either party). The first is the Tech Form 026 Transfer of RAAus Registration form which must be completed and forwarded to RAAus within 7 days of the sale/transfer. The second is the Tech Form 013 Condition Report which must either accompany the Transfer Form or be supplied by the Buyer separately (by mutual agreement). Usually the 013 Condition Report is conducted by the Seller. Recent photographs of the aircraft must usually accompany the forms including photographs of the left and right side of the aircraft (registration markings) and the cabin placards.

Conducting a check to ensure that there a secured interest against the aircraft a very important step when purchasing an aircraft. A security interest is created when a secured party (usually a lender) takes a lien or interest in property as security if the obligation is not met.

An aircraft Personal Property Securities Register (PPSR) check provides assurance that the aircraft, is recorded as ‘debt free’. We can assist you to conduct the check, which can be also completed online by anyone for a nominal fee.

Yes, absolutely. As a buyer, you should always attempt to find out as much as you can about the aircraft before you purchase. That said, there may be outstanding items that need to be checked, while on the face of it you are happy to make the purchase.

The best way to purchase, while providing for an option to continue your due diligence, is to make a ‘conditional agreement to purchase’. That is, an agreement to buy the aircraft on provision that stipulated conditions (that you set) are met. Once a conditional agreement is finalised a refundable holding deposit can be made (a Broker will usually hold this into trust) and when the conditions are met, full settlement can be made.

When an aircraft broker holds deposit monies into trust while providing a legally binding conditional contract, the risk associated with purchasing an aircraft is mitigated for the buyer.

This is a question that we are often asked. Suffice to say, the liability held by the manufacturer is held to a far lesser standard for amateur built and experimental aircraft, than for certified types. And, dependant on your agreement with the buyer, representations made and other factors, it is highly unlikely that any liability is retained by the ‘manufacturer’. Legal advice is always recommended. We can assist depending on your situation and package choice, by providing detailed advice, wording for contracts and other resources. It is recommended you contact us when selling your amateur built or experimental aircraft.

This is an interesting question that is open to some interpretation and is dependent on circumstances. Generally, if the buyer has made an offer and the seller has accepted the offer and paid a deposit (consideration), you are not necessarily entitled to a deposit refund.

However, this depends on what else was agreed. Whether the deposit is refundable depends on whether the contract is conditional. That is, was it agreed that other conditions needed to be met before the contract was completed? Was there a ‘cooling off’ period specified to allow you to complete your decision to purchase? What was the loss to the seller born by a decision to terminate the agreement? And what proportion of the total was the deposit? All these factors will come into play when assessing the likelihood that the deposit should be returned.

We are happy to provide our views on this matter or alternatively, assist you prior to these matters arising, to ensure that your risk is mitigated.

SIDS (Supplemental Inspection Documents) inspections are a mandatory series of structural inspections imposed on Cessna 100, 200, 300 and 400 series aircraft by the FAA, CASA and developed by the manufacturer. The initial tranche of inspections were required to be completed from 2014 until June 2016, however the inspections are ongoing and work in conjunction with the Cessna CAR 42A schedule or CASA’s 42B Schedule 5 or 42C approved systems of maintenance.

Airworthy and flying Cessna aircraft that are ‘SIDS compliant’ are not simply immune from future inspections. They will still require periodic inspections, so the phrase ‘SIDS compliant’ really means that the system of maintenance was carried out initially, but continues. Always ask for aircraft airframe logbooks or better still, a summary of component life and inspections schedule from the seller, or the LAME who conducts the aircraft’s maintenance.

In short, no. When you fill in the CASA 027 Part 2 as the new owner, you can fill in your details (and ARN) into the form to become the new registered owner, however you are not eligible to be the registered operator from outside Australia, unless you are an Australian Citizen or resident / approved VISA holder. You should obtain proof of this status and provide it to CASA, or alternatively, fill in Sections 5 and 6 of the CASA 027 Part 2 and accompany the filled in form with a signed authority for another party (person) within Australia to become the Registered Operator. To cancel a Registered Operator, use CASA Form 32. Visit www.casa.gov.au for more information.