December 23, 2025

Aircraft Closing Checklist: What Sellers Should Expect

Almost every aircraft sale flows through one of the established title and escrow companies in Oklahoma City. Much like title companies in real estate transactions, these firms specialize in managing everything from a straightforward domestic sale of a Cessna 152 to a complex, multi-step transfer involving trusts, foreign buyers, or financed transactions.

Regardless of the aircraft or parties involved, every escrow company operates under the same FAA rules and accepted industry practices. Those requirements are organized into what is commonly referred to as the closing checklist. From the seller’s perspective, this checklist is not bureaucracy for its own sake. It’s the structure that ensures the aircraft can be conveyed with clear, marketable title and that funds are released correctly at closing.

One of the most important things for sellers to understand is the role of the escrow company itself. Escrow agents are neutral third parties. They don’t advocate for either the buyer or the seller, and they don’t manage the deal on anyone’s behalf. While service levels and communication styles may vary, one rule is consistent across all transactions: the parties themselves are responsible for keeping the process moving. Escrow will execute the checklist, but they won’t drive your timeline for you.

Every file begins with a signed Aircraft Purchase Agreement and a new title search. The purchase agreement gives the escrow agent the essential details of the transaction, including the aircraft information, parties involved, pricing, and key dates. With that in hand, the agent orders an updated FAA title search to confirm that the aircraft is free of liens or other title defects. If the aircraft or engines qualify for the International Registry, an IR search is typically ordered as well. While this adds cost, it provides a complete view of recorded interests and is often required when financing is involved or when an existing lien must be released.

Once the file is open, sellers should expect requests for personal or organizational identifying information. These requests are part of mandatory Know Your Customer and Anti-Money Laundering requirements. You may be asked to provide a copy of a driver’s license or passport, contact details, and entity documents if the aircraft is owned by an LLC, corporation, or trust. While this can feel intrusive, it’s not optional. If the escrow company cannot clearly identify you and verify your ownership authority, it will decline to handle the transaction.

At this stage, the buyer’s deposit is typically due into escrow. Once received, the escrow agent issues a deposit confirmation to all parties. For sellers, this confirmation is often the first tangible sign that the transaction is progressing toward closing.

From there, activity usually slows while the pre-purchase inspection is completed. During this period, escrow continues working in the background. If the aircraft is subject to an existing lien, the agent will coordinate with the lienholder to obtain a payoff statement and a signed release to hold in escrow. This advance coordination is critical. It allows the lien to be paid off and released immediately at closing, without delays after funds are received.

Once the inspection is complete and any price adjustments are resolved, the transaction enters its final and most active phase. The escrow agent prepares closing statements that detail every incoming and outgoing dollar. As the seller, you must carefully review these statements, confirm payoffs, commissions, and net proceeds, and approve the final numbers before closing can proceed.

You will also be asked to pre-sign the FAA Bill of Sale. This document is held by the escrow agent and is not filed until closing is authorized. Signing it in advance doesn’t transfer ownership; it simply allows escrow to complete the filing immediately once all conditions are satisfied.

With documents signed and funds in place, the process reaches its final step, one that is often overlooked: explicit closing authorization. Even after everything appears complete, escrow cannot close the transaction without clear, final approval from both parties. This authorization is typically provided by a short email stating that you approve closing. Until that approval is received, no documents are filed, no title transfers, and no funds are released.

While every closing checklist is tailored to the specific aircraft and transaction, the fundamentals never change. Escrow must have a valid contract, verified parties, executed documents, cleared funds, accurate wiring instructions, and final authorization before it can close.

For sellers who understand these steps and stay engaged, the process is straightforward and predictable. With preparation and timely responses, the closing checklist becomes less of an obstacle and more of a roadmap, guiding the transaction to a clean, efficient closing and the successful transfer of your aircraft.