Individuals and business leaders looking to acquire airplanes may view previously-owned planes as cost-effective purchases. Strict standards for airplane maintenance and disclosure laws make purchasing used airplanes a relatively safe and predictable process.
Unfortunately, there are always a few bad actors who can complicate matters for everyone. Some people simply do not remain actively involved in airplane maintenance and may therefore be unaware of issues with the planes they list for sale. They may not intentionally fail to disclose defects, but there may still be issues that they do not identify in the pre-purchase disclosure paperwork.
Others intentionally attempt to misrepresent the condition of the airplanes they list for sale in the hopes of optimizing the sale price. A pre-purchase inspection can help protect buyers from scenarios in which they have to invest substantially in defects that they were unaware of when they made an offer.
Inspections validate the sale price
The point of a pre-purchase airplane inspection is to ensure that the plane is in reasonably safe condition. The inspection report can also provide the prospective new owner with information about the likely costs of addressing any issues with the airplane.
There are checklists that owners who have hands-on experience with plain maintenance can review themselves when inspecting the plane. Most of the time, hiring a professional to conduct the inspection is the best option. Provided that the inspection report aligns with the disclosure documents, the buyer can move forward with the transaction with total confidence that the price is appropriate.
Inspections provide negotiation leverage
If the inspection turns up undisclosed issues with the airplane, the buyer then has two options. They can cancel the transaction and begin looking for a different airplane in better condition. They may also be able to use the issues with the plane as a reason to negotiate with the seller.
When facing the obligation to make more thorough disclosures or reduce the asking price for future buyers, sellers may be willing to make certain concessions in order to move forward with the transaction already in progress. Particularly in scenarios where the sale comes out of financial necessity for the current owner, agreeing to purchase it at a reduced price given the repair needs can be a cost-effective solution.
People aspiring to acquire airplanes for personal or business purposes may need assistance crafting offer documents that extend adequate protections and asserting themselves when issues arise during a transaction. Retaining the services of an attorney familiar with aviation law can make all the difference. Buyers with the right support can limit their exposure during a complex airplane purchase transaction.