For international transactions, aircraft may be imported and integrated or exported into the U.S. aircraft registry and removed from the U.S. aircraft registry. The agent will help you submit the necessary documents to coordinate the import or export of the aircraft. The agent will also monitor documents processed by the FAA to ensure that documents circulate if necessary. The agent coordinates with the lender, section 1031 of the comparable stock exchange intermediary (if any), the buyer and the seller, in order to prepare the provisional closing statements. The agent also collects all transfer instructions and, if necessary, initiates transfers during the closing process. If the offer is accepted, a down payment of 5% to 10% of the proposed purchase price will be immediately wired to a third of the Oklahoma City, Oklahoma-based fiduciary aviation company. All trust companies are located in Oklahoma City, so they may be close to the FAA Aircraft Registry Division, where all documents must be submitted to transfer ownership of aircraft registered in the United States. The ACT stipulates that an aircraft purchase agreement must be concluded within a short period of time or the law must be terminated. Buyers will often make a down payment to a trust company before making the first offer to show how serious they are when they buy an aircraft.
In addition to the closing documents, the fiduciary takes over the funds related to the transaction. The first deposit is sent to the fiduciary agent, who then creates a file for the transaction and starts the process of searching for pledges. In the event of a late payment from the buyer or seller, or even if one of them is confirmed in the sales contract, a letter of claim is sent to the trust agent to request the release of the deposit. The agent almost always requires an agreement between both the buyer and the seller for the sale of the deposit before the funds are released. It does not matter whether the down payment is currently considered refundable or not under the terms of the sales contract. The agent does not wish to be able to interpret the sales contract. Therefore, if there is a dispute or if the sales contract is in any way ambiguous, no funds will be released until both parties have agreed.