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Can airplane owners sell their planes in as-is condition?

On Behalf of | Oct 14, 2024 | Aviation Law |

Purchasing an airplane is a major investment, and selling an airplane can be a significant undertaking. The law has to balance the interests of both parties. One of the ways the government protects those acquiring airplanes is through disclosure requirements.

Typically, those listing an airplane for sale have to provide in-depth disclosures explaining the condition of the various systems in the airplane and any significant defects that the new owner may need to address. Some sellers may hope to bypass disclosure obligations and costly inspections by listing an airplane in as-is condition.

What does an as-is sale mean for a buyer and seller?

Sellers limit but do not eliminate liability

Many sellers overestimate the potential impact of an as-is airplane listing. They convince themselves that they don’t have to disclose known defects so long as they list an airplane in as-is condition and inform the buyer that there are no implied or express warranties on the airplane.

As-is sales may make sense in certain circumstances, such as when a family member of someone who died inherits their airplane. People may not actually know what the condition of the airplane is. Even an owner who may have flown the plane previously may not have done so in years due to health challenges or other unusual personal circumstances. Selling the plane in as-is condition is a means of limiting liability.

However, it does not eliminate legal responsibility. Buyers can sometimes still hold prior owners accountable in scenarios where they uncover significant defects after purchasing the airplane. An as-is sale does not technically absolve a seller of the obligation to be forthright about the condition of the airplane.

Buyers looking at planes offered for sale in as-is condition may benefit from reviewing the disclosure paperwork at length with an attorney and consulting with a trusted airplane mechanic. Having a thorough inspection of the plane can help identify many defects, although even skilled mechanics can sometimes overlook concerning latent defects.

Disclosures are an important form of protection for buyers and sellers conducting aviation-related transactions. Learning more about disclosure requirements can help both buyers and sellers limit their personal exposure before proceeding with an airplane sale transaction.