Davis Law Aircraft Title & Escrow is an aviation title and escrow branch of Davis Law Firm, P.A.. Davis Law Aircraft Title & Escrow offers specialized escrow and title services and provides knowledgeable assistance with title and document recordation within the aviation industry. Our employees have assisted clients in all aspects of aircraft transfers and can provide experienced advice to provide guidance to all parties throughout the duration of the transaction.
If you or your client is seeking advice on aircraft purchases, sales or leases; state, federal and international registrations of foreign or domestic aircraft; financing of an aircraft purchase; placement or release of security interests; or how to complete a 1031 like-kind exchange, Davis Law Aircraft Title & Escrow can provide the assistance you need.
Throughout the transaction, Davis Law Aircraft Title & Escrow works with the purchaser, seller, lending institution, attorneys and all other parties involved to ensure the protection of all interests and to complete the transaction in an efficient and effectual manner while maintaining compliance with all regulating bodies.
Aircraft Purchases And Sales
When purchasing or selling any size or type of aircraft, it is important for a buyer or seller to retain an aviation attorney who possesses the knowledge and experience necessary to navigate through the complicated and sometimes lengthy process. Aviation law is a complex field that incorporates many different aspects of the law. An aviation attorney plays a vital role as an advocate and consultant while guiding the client through the process. This includes, for example, negotiating with third parties on behalf of the client, working with the client to minimize both taxes and registration fees, and providing consultation on options for liability protection. An attorney ensures that every necessary step is taken to avoid future headaches with the various state, federal and international regulators.
Leasing an aircraft can provide an income stream and management services that may offset some of the costs and expenses of aircraft ownership. We can assist in the drafting and negotiating of all lease terms to ensure the viability of the lease and protect the client’s interests.
Leasing a hangar requires coordination between various regulatory authorities including the FAA, the airport board, and state and local governments. An individual considering leasing a hangar should employ an attorney to draft the lease agreement and facilitate negotiations.
Aircraft Title Search Review
An attorney can employ a qualified escrow and title company to complete title searches on the aircraft. The attorney will then review the results of the title search prior to the completion of any transaction to ensure that both the aircraft and the engines are free and clear from any claims, liens, judgments or fractional interests.
Taxation And Registration Fees
Planning for tax and registration fees prior to the purchase of the aircraft can save an aircraft owner thousands of dollars. Each state has significantly different taxation laws and registration fees for aircraft owners. An aviation attorney with knowledge of various state laws can assist an aircraft owner in choosing the state in which to register the aircraft and advise him or her on the most advantageous tax strategies.
Non-Resident Aircraft Purchases
In order to register an aircraft in the United States, the owner must be a U.S. citizen, a non-U.S. citizen lawfully admitted as a permanent resident, or a corporation organized and doing business under U.S. law or state law provided the corporation meets the qualifications established in FAR Part 47. An attorney can assist non-U.S. citizens in aircraft acquisitions and FAA registration with the use of business entities or owner trusts, as well as drafting operating agreements or leases in compliance with FAR Part 47. Provided the business entity or owner trust is properly established and an operating agreement is executed, non-U.S. citizens may purchase, register and operate an aircraft in the United States.
An attorney can work with the client’s financial institution to ensure all necessary paperwork is completed and facilitate a smooth closing.
FAA Certifications And Regulations
A fixed-base operator (FBO) is a commercial business regulated by the FAA that offers services such as flight instruction, hangaring, fueling and aircraft maintenance. An attorney can aid in navigation and compliance with the various regulations that govern FBOs.
A FAR Part 145 Maintenance Operator is a maintenance shop that holds an FAA repair station certification allowing it to perform certain maintenance and repairs on aircraft. A FAR Part 135 Charter Operator is a charter service that holds an FAA air carrier operating certificate that allows it to provide charter services to the general public. An attorney will assist in the application process necessary to obtain the certification and ensure compliance with all corresponding FAA regulations. An aviation attorney can also assist with other FAA certifications.
Aircraft Registrations (State, FAA, And International)
An aircraft must be registered with several different regulatory bodies upon transfer of ownership. Improper registration can result in impoundment of the aircraft, imprisonment of the aircraft crew, and fines assessed against the aircraft owner. A potential aircraft owner should employ an attorney’s advice to ensure proper registration.
Consultation On 1031 Exchanges
A 1031 exchange, commonly referred to as a like-kind exchange, is a tax-deferred exchange of income-producing property. It is important to consult with an attorney prior to completing a 1031 exchange to complete the exchange correctly and avoid tax liabilities.
Aircraft Liability Protection Planning
An aircraft owner should consult with an attorney for advice on liability protection. One of the easiest and most effective ways to plan against future liabilities stemming from aircraft ownership is to form a business entity in which to own the aircraft. This creates a liability shield which helps to protect the owner from becoming personally liable for any claims arising out of the ownership or operation of the aircraft. For further liability protection planning, a qualified aviation attorney can also review an insurance policy to confirm that the aircraft is adequately insured.
Consult An Aviation Attorney
From purchasing an aircraft to leasing a hangar, you need the guidance of a skilled attorney. Consult Davis Law Firm, P.A. for your aviation law needs. Call 507-200-2579 or send an email to schedule a consultation in Rochester.