Step 5: Put a Deposit Down on the Aircraft
After you have reviewed all available information about the plane and you feel fairly comfortable that
this is the plane for you, it is time to put down a deposit to remove the aircraft from the market.
This will secure the aircraft while you make arrangements for a pre-purchase inspection.
Why put down a deposit?
This tells the seller that you are serious about the plane. You are saying that yes, I have the money to buy the plane
and if it is everything that it is represented to be, I will buy it. This gives you first rights to the plane, meaning
that the plane will not be sold out from under you. A purchase agreement should be signed by both parties, outlining
the terms of the sale. Before sending your deposit money, you should trust the seller, make sure you understand and agree
to the terms of the sale, and be sure your deposit is refundable. It is common for the seller to retain a small portion
of the deposit, if there were expenses involved, but this should be clearly outlined beforehand.
Escrow Services
If you find a plane you like, but you are not comfortable sending a deposit to the seller, you can enlist the services
of an Escrow Company. For a fee, an escrow service will hold the money and the aircraft documents until both parties give
authorization for release. Then the money & documents are disbursed to the appropriate parties.
Most Escrow companies that charge for their services are insured by the FDIC. This is not always the case, however; so it is a good idea to verify this before you send your money to a third party.
What you can expect from The Plane Exchange?
For each airplane on our website, we have included a link to the purchase agreement. This agreement
is designed to protect both the buyer and the seller, by outlining what is expected from each party.
There is room to add your own comments as well as your contact information. By clicking 'I accept' you agree with
everything on the purchase agreement, however, it is not yet finalized. For confirmation, we will email you
and the seller,
a final copy that includes your purchaser information, an aircraft spec list and the agreed purchase price as well as any
other stipulations such as subject to pre-purchase inspection. We customize your purchase agreement
to be consistent with your needs!
Upon acceptance of the purchase agreement by both parties, you will call the Wire Transfer Department of your bank
and instruct them to transfer the deposit funds. You will find complete wire transfer instructions
at the end of your purchase agreement.
Our services provide protection for your aircraft deposit and purchase money until the sale is complete.
We facilitate the closing and hold all money in our escrow account until you authorize the disbursement
of funds. There is no need for additional, expensive escrow arrangements. We can even handle
international transactions and import/export arrangements. If you have any questions, or would like to discuss
other financial arrangements, please contact a Plane Exchange representative at (888) 266-9138.
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