Define the mission and decision boundary

Before paying for deep diligence, confirm:

• Passenger, range, runway, baggage, dispatch, and cabin requirements.
• Annual hours, cycles, destinations, and international use.
• Crew, training, hangar, fuel, maintenance, and management model.
• Acquisition budget, cash-to-close, reserves, and annual capacity.
• Expected ownership horizon and exit market.
• Regulatory operating model and approvals needed.
• Aircraft features that are mandatory versus merely desirable.

A technically excellent aircraft can be the wrong acquisition if it cannot perform the mission, obtain insurance, fit the operating structure, or preserve liquidity.

Put diligence rights in the purchase agreement

The agreement should identify the aircraft and included property, deposit, inspection facility, scope, records access, ferry arrangements, deadlines, discrepancy process, cure rights, acceptance standard, damage risk, closing conditions, delivery location, and termination mechanics.

Create a deadline table:

Do not rely on an informal extension. Aviation counsel should document changes to contractual rights.

Verify identity, ownership, liens, and closing path

• [ ] Registration, manufacturer serial number, and seller identity reconcile.
• [ ] Engines and other separately financed or registered assets are identified.
• [ ] FAA registration and recorded security documents are reviewed.
• [ ] State-law liens and other relevant searches are scoped by counsel.
• [ ] International Registry interests are addressed if applicable.
• [ ] Existing liens have executable release arrangements.
• [ ] Bill of sale, registration, security, and escrow documents are prepared.
• [ ] Corporate authority, signatures, and beneficial ownership requirements are satisfied.
• [ ] Delivery location, risk of loss, and possession timing are explicit.

The FAA explains that its Registry records qualifying documents but does not perform title searches. It also notes that state law determines lien and security interests. Use a qualified title company and aviation counsel; Radar does not provide a title opinion.

Review the complete records package

Inventory and test:

• Airframe, engine, APU, propeller, and component records.
• Total time, cycles, inspection, overhaul, and life-limit status.
• Applicable Airworthiness Directive status and recurring due dates.
• Maintenance program, tracking report, work orders, and signed releases.
• Engine/APU shop visits and program documents.
• Damage, corrosion, repairs, alterations, STCs, and ICAs.
• Weight and balance, equipment list, manuals, and supplements.
• Installed-part release and trace documents.
• Deferred defects and unresolved discrepancies.
• Registration, ownership, import/export, and prior operator transitions.

For U.S. Part 91 aircraft, 14 CFR 91.417 lists specified owner/operator records and retention periods. A buyer or lender may reasonably request more historical evidence than that regulatory minimum because value, maintenance planning, and marketability depend on continuity.

Use the aircraft pre-buy records review to create a source-linked exception register.

Scope the physical pre-purchase inspection

Choose an independent, appropriately certificated facility or personnel with model experience. The scope should reflect aircraft complexity, age, utilization, records findings, known damage, and buyer risk tolerance.

Include as appropriate:

• Aircraft identity and installed configuration.
• Scheduled inspection items and access.
• Engine/APU diagnostics and borescope.
• Corrosion and structural hot spots.
• Flight controls, systems, avionics, and cabin equipment.
• Leak, wear, tire, brake, and landing-gear condition.
• Damage and repair verification.
• Ground run, functional tests, or test flight.
• Review of open discrepancies and deferred items.
• Written findings with photographs and source references.

A generic annual inspection is not automatically a transaction-ready pre-buy. The purchase agreement should allocate findings, corrective work, and contractual acceptance. Any required approval for return to service remains with a person authorized under the applicable aviation rules and procedures.

Reconcile maintenance exposure and programs

Build an event forecast for the expected ownership period:

For engine or APU programs, confirm covered serial numbers, enrollment, invoices, rate, minimums, exclusions, escalation, transfer, deficit, prior claims, and termination. “On program” does not tell the buyer what is covered or owed.

Investigate damage, repairs, and alterations

For each event, connect the original finding to:

• Report and notification.
• Engineering or approved repair data.
• Accomplishment and inspection records.
• Required forms and releases.
• Instructions for continued airworthiness.
• Repeat inspection or limitation.
• Weight, balance, manual, and configuration updates.
• Physical evidence on the aircraft.

Ask the appraiser, lender, insurer, and intended operator how the event affects their decision. A repair can be properly approved yet still affect marketability or policy.

Test value and total acquisition economics

Separate:

• Negotiated price.
• Appraised or supported market value.
• Maintenance-adjusted economic position.
• Taxes, fees, escrow, travel, inspection, and delivery.
• Immediate corrective maintenance and upgrades.
• Training, subscriptions, spares, and entry-into-service.
• Annual fixed and variable operating cost.
• Retained liquidity and downside exit scenario.

Radar’s aircraft valuation guide explains the serial-number bridge from market comparables to maintenance, configuration, damage, and records adjustments. Use a qualified independent appraiser if the lender, insurer, auditor, tax adviser, or buyer requires a formal report.

Complete tax, ownership, insurance, and operating review

Before deciding where to close or register:

• Obtain aviation tax advice for sales/use, property, income, depreciation, and personal-use issues.
• Confirm the ownership and operating structure with aviation counsel.
• Bind insurance on acceptable terms, including pilot and training requirements.
• Plan crew, management, maintenance, subscriptions, hangar, and training.
• Confirm import/export, customs, sanctions, and registration requirements where relevant.
• Determine whether Part 91, 135, commercial, or other operating approvals are required.

Do not let a tax idea dictate an unsafe or unlawful operating arrangement. Radar does not provide legal, tax, accounting, insurance, or operational approval advice.

Run one acquisition issue register

Each finding should include the fact, evidence, specialist owner, contract right, consequence, decision deadline, proposed cure, cost, and disposition.

Classify the outcome:

• Cure before acceptance or closing.
• Price or maintenance adjustment.
• Escrow holdback or specific indemnity.
• Operational restriction or planned post-close work.
• Accepted risk with named authority.
• Reject or terminate under the agreement.

Never mark an issue closed because an email thread became quiet.

Closing-day evidence checklist

• [ ] Inspection acceptance and required cure evidence are final.
• [ ] Final aircraft/component time statement is signed.
• [ ] No new damage or material change occurred.
• [ ] Title and lien searches are updated as advised.
• [ ] Release documents are executable and escrow instructions match.
• [ ] Bill of sale, registration, financing, and corporate documents are ready.
• [ ] Insurance is bound at the correct handover time.
• [ ] Funds, taxes, fees, and delivery conditions are confirmed.
• [ ] Records and physical aircraft delivery are receipted.
• [ ] Program, warranty, subscriptions, and portal transfers are initiated.
• [ ] Post-closing actions have owners and deadlines.

Use the aircraft purchase closing checklist for the escrow and delivery sequence.

Sources and further reading

• FAA aircraft records overview
• FAA guidance on clear aircraft title
• FAA Aircraft Registry
• 14 CFR 91.417, Maintenance records
• NBAA Aircraft Transactions Guide