The agreement should determine who sells and who buys the aircraft. While it sounds simple, the identity of each party is not always clear. It is very common for aircraft to be registered in the name of a limited liability company or company (LLC). In these cases, the person with whom the buyer negotiates is not the owner of the aircraft and should not be considered a seller. On the contrary, the registered owner of the aircraft – LLC or the company that is considered a registered owner in the U.S. Civil Aviation Registry – should be identified as a seller. Most sellers will want to include in the sale agreement a liability clause stipulating that the buyer buys the aircraft “is-is-east”. The agreement will also say that the seller makes no guarantees or does not rely on the condition of the aircraft. It may also explicitly refer to the fact that the purchaser relies only on his own investigation, inspection and assessment of the aircraft.
The agreement should specify the amount paid for the aircraft. It should also include whether the buyer gives a down payment or serious money to the seller, and what happens to the deposit? Is the money in trust or simply held by the seller? If an agent is not involved, the buyer must ensure that the deposit does not simply disappear into the seller`s pocket, making recovery difficult, if not impossible, if the transaction is not completed. The agreement should also indicate the conditions under which the deposit must be repaid and the circumstances under which the seller can keep the deposit if the agreement is not concluded. The seller wishes to exchange the full right, title and participation of the seller on the aircraft for other aircraft of the same nature and qualifying use, in accordance with Section 1031 of the Internal Income Code. In order to promote these rights, the seller expressly reserves the right to exercise his rights, but not his obligations, in accordance with IRC Reg. 1.103l (k) -l (g) (4) to be sold to Exeter 1031 Exchange Services, LLC, a qualified intermediary. NOW, Therefore, taking into account the mutual agreements and agreements it contains and for other good and valuable considerations, the parties agree in the following way: in addition, the use of an aircraft purchase contract can help to avoid confusion and misunderstanding. If the agreement clearly states how and when the transaction will take place and what is included in the agreement, the likelihood that the buyer and seller will know the expectations of the other party is low, and the less likelihood of surprises or misunderstandings is greater. The buyer and seller agree that the terms of this contract, including all exhibitions, constitute the entire agreement between the parties. Re: _____________N______________ From the buyer`s point of view, the property guarantee is probably the most important thing, as it guarantees that the buyer will get ownership of the aircraft freely and without any mortgage.