Are you free and clear?
The story usually goes something like this: Excited pilot buys first airplane and becomes new owner.
New owner doesn't do homework. New owner gets a bill from ABC bank six months later for $10,000.
In the world of aircraft ownership,?nothing is more shocking and damaging than realizing the fantastic new airplane you just bought came with a lien. Liens follow aircraft, and getting them released can be a major hassle and possibly cost thousands of dollars.
Aircraft liens, or encumbrances, come in two types — security agreements and artisan. Lenders record security agreements. It's referred to as an agreement because both the secured party (bank) and debtor (owner) sign the document guaranteeing the loan. Artisan liens are usually filed by mechanics and do not require the owner to sign.
Many owners are surprised to learn that in more than half of the states, the FAA does not require a court judgment before filing an artisan lien. That means that in many cases, mechanics and other people who work on your aircraft can make first claim to the aircraft's title without a third-party review of legality beforehand. Fortunately, all liens on the FAA record are open to challenge in state court.
Doing a title search before you purchase is imperative. AOPA will do one for $99. You can order one by calling 800/USA-AOPA (872-2672). Doing a search ensures you are buying an airplane with no encumbrances, and that gives you peace of mind.
You have a number of options if faced with a lien. Typically, liens on the record are old and were paid years ago. Because the process can be somewhat confusing, many local banks don't release liens that have been satisfied. Buyers can track down the bank and make sure it releases the lien with FAA Form 8050-41.
Banks often change hands a number of times so tracking down the secured party can be quite a challenge. AOPA's title clearance service was created for this reason; the service tracks down the record and clears most old liens. But beware: If the lien hasn't been satisfied, you will owe the money.
AOPA's Pilot Information Center is a great source of information on liens.? Technical specialists are available during normal business hours from Monday through Friday. Call 800/USA-AOPA or e-mail [email protected].
Membership Q&A
Answers to frequently asked questions about your AOPA membership
Q: There are so many aircraft insurance agencies to choose from; how do I make sure I'm using the right one?
A: The aircraft insurance industry is relatively small. While there are hundreds of insurance brokers who sell aircraft insurance, there are only about 10 aviation underwriters — the companies that issue quotes and assume the insurance risk. Most agencies work with a majority of the same underwriters, and can provide you with the same coverage and price as the next agency. Insurance is all about peace of mind, so choose an insurance agency you know and trust and one that specializes in light-aircraft insurance. Find out why AOPA members place their trust in the AOPA Insurance Agency — the agency that supports and is backed by AOPA's 400,000 members. Visit the Web site ( www.aopaia.com) or call 800/622-2672.
Q: What are the benefits of renewing my membership online?
A: It's a quick and convenient way to renew your membership. You'll receive a free members-only AOPA pilot cap. And you'll get $2 off the cost of your membership dues by using our self-service renewal application on the Web. Renewing online eliminates all of those unwanted renewal notices. To renew online, go to our home page and click My AOPA in the left column. From there, select Renew My Membership and follow the instructions.
Q: I will be reporting some medical history to the FAA for the first time and I suspect that, from what I hear, it may take a while for my medical to be issued. How can I make sure I'm doing everything possible to minimize the delay?
A: You want to do all your homework before sending anything to the FAA. AOPA's Medical Certification Tips to Know Before You Go ( www.aopa.org/members/files/medical/tips.html) can provide you with valuable information about gathering your records, packaging them properly, and making certain the records are correctly sent to the FAA. Proper documentation is one of the keys to receiving a favorable and timely response from the FAA. If any required information is missing from the original records, it can double or triple the time required before you will receive the medical certificate.
Member Services contact information:
Phone: 800/USA-AOPA (872-2672), 8:30 a.m. to 6 p.m. Eastern Time Monday through Friday
After hours: Renew your membership, reset your Web password, or enroll in Automatic Annual Renewal using our self-service touch-tone phone option.
E-mail: [email protected]
Web: Update your personal information, renew your membership, and much more by clicking on My AOPA in the left column of our home page.
AOPA's title clearance service ( www.aopa.org/info/certified/tne/). Find FAA Form 8050-41 online ( www.aopa.org/members/files/faa/8050-41.pdf).
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