I consider the title search part of the escrow process. The offer is contingent on a clean title, so yeah.

Another of a long string of lessons. I bought a '67 C-206 from an ex Cessna dealer in El Monte, CA, G&H Aircraft. Being naive and trusting, I gave the guy a cashier's check for $25,000 with the understanding he would replaced the existing 2 bladed prop with a 3 bladed prop as the advertisement for the plane stated. Because of the business being in El Monte for years and being an ex Cessna dealer(why ex?), I did not do a title search. Also was advertised as no damage history.

When I picked up the plane, no 3 bladed prop. I was eager so I said ok. About a month into the ownership, a get a call from a bank, hmmmm. Asked if I owned this plane and I said yes. They said the plane and several others had been pledged as collateral on a line of credit that had been used. I contacted the seller and "no problem, that is just a papework issue, I'll take care of it tomorrow". RIGHT!

Got a lawyer and sued the bank. Bank sued me, police arrested seller. He was charged with 21 counts of fraud. Turns out he sold some planes to multiple buyers, he FORGED lien releases on some so a title search would come up clean. And a title search at this time was not a guarantee of clear title but Oklahoma was just a clearing house for titles.

Bottom line is that I paid about $10,000 in legal fees AND gave the bank $15,000 for them to settle the ownership issue. That was now a $50,000 plane that I sold for, yep, $25,000 in '89.

My subsequent plane purchases have had title searches and I have always contacted as many previous owners as possible before buying to find out about unlogged damage or any other issues that might affect my purchase. BUYER BEWARE!!! Almost forgot, when I started researching the history of the 206, I found the previous owner. He had sold the plane to a salvage yard because the plane had been started by his father and it ran into a AP cart, damaging the prop, cowling, and right side strut!!!!! He said the plane was a good plane but he did not have time to wait for repairs!!!!!! Not a mention of this in the log books, only a note about skin repair!!!!

Maybe make a successful title search clause in your offer? Something that says along the lines of "here's what I'm willing to pay if all your airplane's ducks are in a row."

Floatflyer, ouch! That's a nightmare.

One of the reasons you buy title insurance when buying a home is to protect yourself against that very scenario: title search turns up no liens but there still are some debts legally attached to the asset that turn up later.

Wonder what it's like to actually use that title insurance? It ain't easy on real estate.

gbflyer wrote:Wonder what it's like to actually use that title insurance? It ain't easy on real estate.

I don't ever wanna find out. Neither does the title insurance company, probably.

dogpilot wrote:I've been doing this for years now and I use Insured Aircraft Title in Oklahoma City. Joan Roberts has been in the business for decades now and her team handles all my transactions. I have done three transactions in the last 60 days with them flawlessly....

x2. And conveniently, they have good inroads with Wells Fargo, which has acquired a lot of the little banks that may appear on liens from yesteryear.
-DP

You can make an offer and when you WRITE it up state in the offer that the offer is contingent on a clean report from the title search. If there is anything that showes up you can deal with it with the current owner or get your money back and walk a way.

Sorry did not see the second page and that the question was answered.