m CAUTION: Federal liens against an owner (drug, repossession, etc.) may not show up on your title search. 

State law determines lien and security interests. Although there is no federal requirement to file lien or security instruments with the FAA, the parties to these transactions can file their qualifying documents with AFS-750. 

You may search the aircraft records, or have this done by an attorney or aircraft title search company. 

m CAUTION: FAA registration cannot be used in any civil proceeding to establish proof of ownership. 

There is no substitute for examining the aircraft’s records to secure an ownership history and to determine if there are any outstanding liens or mortgages. This procedure should help avoid a delay in registering an aircraft. 

## Filing Ownership and Lien Documents 

Filing ownership and lien documents constitutes formal notice to the world of the ownership and security interests recorded. A person who engages in a financial transaction involving a U.S. registered aircraft who does not have a title search performed is taking a risk. Under the law, that person will be charged with knowing what is on file with the FAA, even if he or she does not actually know. A simple title search will show the federally recorded owner- ship and lien status of any aircraft registered in the United States. 

## When a Lien Is Recorded 

When a security agreement or lien document is recorded, the FAA sends an Aeronautical Center (AC) Form 8050-41, Conveyance Recordation Notice, to the secured party. This notice describes the affected aircraft (and other eligible collateral such as engines, propellers and air carrier spare parts locations). It also identifies the recorded document by its date, the parties, the FAA recording number, and date of recordation. This recordation notice is sent as a confirmation that the lien has been recorded and added to the aircraft record. 

## Releasing a Recorded Lien 

The FAA Form 8050-41 may be used as a release if the secured party signs below the release statement and returns the form to the AFS-750. The FAA may 

also accept as a release a document that describes the affected collateral, specifically identifies the lien, and contains a statement releasing all lienholder rights and interest in the described collateral from the terms of the identified lien. The release document must be signed in ink by the secured party and show the signer’s title, as appropriate. 

A new AC Form 8050-41 may be requested by con- tacting AFS-750. You will need to describe the aircraft and the lien document sufficiently to identify the specific document needing release. AFS-750 contact information is in the FAA Contact Information appendix on pages A1–A2 of this handbook. 

## Aircraft documents 

There are numerous documents that should be reviewed and transferred when you purchase an aircraft. 

## Bill of Sale or Conditional Sales Contract 

The bill of sale or conditional sales contract is your proof of purchase of the aircraft and will be recorded with the FAA to protect your ownership interest. 

## Airworthiness Certificate 

The aircraft should have either FAA Form 8100-2, Standard Airworthiness Certificate, or FAA Form 8130-7, Special Airworthiness Certificate. 

## Maintenance Records 

The previous owner of the aircraft should provide the aircraft’s maintenance records containing the following information: 

• The total time in service of the airframe, each engine, and each propeller; 

• The current status of life-limited parts of each airframe, engine, propeller, rotor, and appliance; 

• The time since last overhaul of all items installed on the aircraft that are required to be overhauled on a specified time basis; 

• The identification of the current inspection status of the aircraft, including the time since the last inspection required by the inspection program under which the aircraft and its appliances are maintained; 

• The current status of applicable ADs, including for each the method of compliance, the AD number, revision date, and if the AD involves recurring action, the time and date when the next action is required; and 

• A copy of current major alterations to each airframe, engine, propeller, rotor, and appliance. 

