The acquisition of an aircraft represents one of the most complex asset purchases a business or individual can undertake. Unlike commercial real estate or operating businesses, aircraft are mobile assets subject to federal registration requirements, international treaty obligations, and specialized maintenance mandates that create a regulatory overlay unlike any other capital expenditure. Buyers who approach aircraft transactions with the same framework they use for other major purchases often discover gaps in their due diligence after closing. The consequences range from unexpected maintenance obligations costing hundreds of thousands of dollars to title defects that prevent registration or financing. A structured legal due diligence process, conducted before any purchase agreement becomes binding, is the foundation of a sound aircraft acquisition. FAA Registration and Title Verification Every aircraft operating in the United States must be registered with the Federal Aviation Administration. The FAA Civil Aviation Registry in Oklahoma City maintains records of aircraft ownership, liens, and encumbrances. Unlike real estate title searches conducted through county recording offices, aircraft title searches are centralized through the FAA and specialized title search companies that maintain their own databases. A thorough title search examines the complete chain of ownership from the aircraft's original manufacture through each subsequent transfer. Gaps in the chain of title can indicate unrecorded transfers, potential ownership disputes, or fraudulent conveyances. The search also identifies any recorded liens, security interests, or other encumbrances that must be satisfied before a clean title can be transferred. The International Registry, established under the Cape Town Convention, adds another layer of complexity for certain aircraft types. Security interests and leases recorded on the International Registry may not appear in FAA records, making a dual search essential for any acquisition involving aircraft covered by the treaty. Maintenance Records and Airworthiness Compliance Aircraft maintenance records are the single most important factor in determining an aircraft's true value and operational readiness. The FAA requires that aircraft operators maintain comprehensive records of all inspections, repairs, modifications, and component replacements throughout the aircraft's service life. A thorough records review examines compliance with all applicable Airworthiness Directives issued by the FAA. These mandatory directives require specific inspections or modifications to address safety concerns identified after an aircraft enters service. Failure to comply with applicable Airworthiness Directives can ground an aircraft and create significant liability exposure for its owner. Service bulletins issued by the aircraft and engine manufacturers, while not always mandatory, represent recommended maintenance actions that affect both safety and resale value. Buyers should evaluate which service bulletins have been incorporated and which remain outstanding, as the cost of compliance can be substantial. The review should also confirm that all life-limited components are within their approved service intervals. Engines, propellers, landing gear, and numerous other components have defined overhaul intervals measured in flight hours, calendar time, or operational cycles. Components approaching their limits represent near-term capital expenditures that should be reflected in the purchase price. Purchase Agreement Structure and Key Provisions A well-drafted aircraft purchase agreement addresses the unique characteristics of aviation transactions while providing appropriate protections for both parties. Several provisions distinguish aircraft purchase agreements from other asset acquisitions. The pre-purchase inspection provision establishes the buyer's right to conduct a thorough physical inspection of the aircraft, typically at a maintenance facility of the buyer's choosing. The agreement should specify which party bears the cost of the inspection, what constitutes a discrepancy that permits the buyer to withdraw, and the process for resolving disagreements about the aircraft's condition. Escrow arrangements are standard in aircraft transactions, with a neutral escrow agent holding the purchase funds until all closing conditions are satisfied. The agreement should clearly define the conditions that must be met before funds are released, including satisfactory completion of the title search, resolution of any maintenance discrepancies, and confirmation of current registration status. Representations and warranties in aircraft transactions focus on areas specific to aviation: the accuracy and completeness of maintenance records, the absence of unreported damage history, compliance with all applicable Airworthiness Directives, and the seller's authority to transfer clear title. The survival period for these representatio