Congratulations on your decision to buy an airplane!
Purchasing an aircraft is a significant investment. Here are a few reasons why involving a lawyer can be beneficial to ensure a smooth transaction:
Legal Documentation: A lawyer can assist in the review and preparation of the necessary legal documents related to your purchase. This includes drafting or reviewing purchase agreements, bills of sale, title documents, and other contractual paperwork.
Title and Ownership Verification: A lawyer can conduct a thorough title search and investigate the ownership history of the aircraft to ensure that it has a clear title. This helps prevent any potential legal disputes or financial liabilities arising from previous ownership or liens on the aircraft.
Negotiations and Due Diligence: A lawyer can negotiate on your behalf during the purchase process, ensuring your interests are protected. They can also assist with due diligence, reviewing the aircraft’s maintenance records, logbooks, insurance coverage, and other relevant documents to assess the aircraft’s condition and value.
Regulatory Compliance: Aviation laws and regulations can be complex and vary depending on your location. A lawyer experienced in aviation law can guide you through the regulatory requirements, such as aircraft registration, licensing, permits, and compliance with safety standards.
Tax Implications: The purchase of an aircraft may have tax implications, including sales tax, luxury tax, and potential deductions. A lawyer can provide guidance on the tax consequences of the purchase and help you navigate the applicable tax laws to legally minimize your tax liability.
Financing and Insurance: If you are obtaining financing for the aircraft, a lawyer can review and negotiate loan agreements, terms, and conditions. Additionally, they can help you understand the insurance coverage options available and ensure that you have adequate protection for your investment.
Dispute Resolution: In the unfortunate event of any disputes or disagreements related to the purchase, a lawyer can provide legal advice, represent your interests, and help resolve the matter through negotiation, mediation, or, if necessary, litigation.
Remember that this information is general in nature, and the individual circumstances of your aircraft purchase may warrant additional or specific legal advice. Consulting with specialized aviation counsel will provide you with tailored guidance based on your individual situation.
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When looking for the right aviation counsel to advise you, there are several important factors to consider. Here are three key aspects that you should consider:
1. Experience
Aviation law is a specialized field, and it is crucial to find aviation counsel with relevant experience. Your lawyer should have a deep understanding of the intricacies involved in cross-border transactions and international aviation matters. This includes knowledge of national and international aviation regulations, customs procedures, and any transborder tax implications. Additionally, familiarity with different aircraft types and their specific legal requirements is essential. Whether you are purchasing a Gulfstream G650, Bombardier Global 7500 or Pilatus PC-12, having an aviation lawyer who is well-versed in these aircraft types can be invaluable.
2. Availability
In the aviation industry, time is often of the essence. Deals and negotiations can move rapidly, and any delays can have significant consequences. Therefore, it is crucial to find aviation counsel who understands the importance of swift action, can keep pace with the fast-moving aviation industry, and provides prompt and responsive service. Their availability to address your concerns, review contracts, and provide legal advice in a timely manner is essential.
3. Reputation
Negotiating an aircraft purchase agreement, particularly with regard to closing sequences and lien discharges, requires credibility and trust. Engaging an aviation lawyer with a strong reputation in the industry can greatly enhance your chances of securing favorable outcomes. A well-regarded lawyer will often have established relationships with Original Equipment Manufacturers (OEMs) and other key players in the aviation sector who can provide additional expertise and support when needed. These relationships can prove advantageous when it comes to obtaining commercial concessions from the other party, or in cases that require additional specialized knowledge beyond legal expertise.
The author, Shaul completed his LL.M. in Air and Space Law at McGill University.
For more information contact Shaul:
Email: gordon@yyzlaw.com
Mobile: (604)-340-8577
Linkedin:
https://www.linkedin.com/in/shaul-gordon-8b3a42204/
