Aircraft Escrow and Title Agents: How to Choose One and How Closing Funds Flow

For buyers and sellers deciding whether to use an aviation escrow and title agent, which one to hire, and what that agent does with the money and paperwork between signing and funding.

What does an aviation escrow and title agent do?

Escrow agent, title company, attorney and lender: who does what

• Escrow and title agent: neutral. It follows written instructions from everyone and takes no one's side in a dispute.
• Aviation attorney: your advocate. Drafts or negotiates the purchase agreement, reviews the loan documents, and fixes unusual title problems. Optional on a routine deal, but worth it when something in the record is off.
• Lender: sends its own closing instructions, security agreement and funding conditions to the agent. Its money moves only when its conditions are met.
• Financing specialist: if you arranged the loan through a broker such as Jaken Aviation, the specialist coordinates the lender's conditions with the agent. The broker does not hold funds.

Why so many aircraft closings run through Oklahoma City

The FAA Aircraft Registry sits at the Mike Monroney Aeronautical Center in Oklahoma City. A conveyance is "filed for recordation upon the date and at the time it is received" by the Registry (14 CFR 49.17). Under 49 U.S.C. 44108, a recorded instrument is valid against third parties from that filing. So the gap between the seller's money being released and the documents being filed is the riskiest moment in a closing. Many aviation title and escrow firms are based in Oklahoma City so they can hand-deliver the package and close that gap to minutes.

That doesn't mean you go there. A typical piston closing is done remotely: documents signed with ink or e-signature and couriered, and funds sent by wire. An agent elsewhere can still do the job well. Just ask how, and how quickly, they get documents filed once funds are confirmed. The FAA's CARES online system now accepts some filings electronically, but ask your agent and lender how they want the documents filed.

How to choose an aircraft escrow agent: 10 questions to ask

1. Do you handle aircraft transactions only, or mostly? How many piston closings a month?
2. How do you file with the FAA Registry, and how soon after funds are confirmed?
3. Is my money held in a segregated escrow or trust account? At what bank?
4. What exactly does your fee include: search, document prep, filing, wires, holdbacks? What costs extra?
5. Do you run a final title update on the day of closing?
6. How do you verify wire instructions, and will you ever change them by email? (The right answer is no.)
7. Can you work from my lender's closing instructions? Have you closed with this lender before?
8. How do you handle a partial holdback, for example to cover a lien release that is promised but not yet delivered?
9. Do you carry errors-and-omissions insurance?
10. Who is my single point of contact, and how late on a weekday can you file and fund?

How money and documents move at an aircraft closing

1. Escrow agreement. Buyer and seller sign instructions naming the aircraft, the price, the deposit terms and the closing conditions.
2. Deposit. The buyer wires the deposit to the agent. It is refundable or not according to the purchase agreement's contingencies.
3. Title search. The agent reports the record and any liens to be paid off at closing.
4. Payoff letters. The agent gets a payoff figure and a per-day interest amount from each of the seller's lienholders, with a signed release to be delivered on payment.
5. Documents in trust. The seller signs the bill of sale; the buyer signs the registration application and the lender's documents. The agent holds them and does not file yet.
6. Funds in. The buyer wires the balance due. The lender wires the loan proceeds once its conditions are met, such as insurance naming it as loss payee and a clean title report.
7. Release call. Buyer, seller and lender each authorize closing, usually in writing.
8. File. The agent files, together: the seller's lien releases, your bill of sale and registration application with the $5 fee, and your lender's security agreement with its $5-per-collateral-item fee.
9. Disburse. Payoffs go to the seller's lenders, fees are paid, and the net goes to the seller.
10. Closing package. You receive the closing statement and a copy of your signed application, which is your temporary authority to fly within the U.S.

Worked example: sources and uses on a $185,000 purchase

This example uses sample fees, not quotes: 15% down, a $10,000 deposit, a seller loan with a $96,400 payoff, and a $700 escrow fee split evenly.

The buyer's balance due equals the price, less the deposit and the loan, plus the buyer's share of costs. The seller's net is the price less the payoff and the seller's share of the escrow fee. In and out must match to the penny before anything is filed. For a full list of what else you may pay, such as the inspection, insurance and sales tax, see aircraft closing costs.

What does aircraft escrow cost, and who pays?

FLYING Finance (updated July 2026) describes escrow on most piston transactions as "a few hundred dollars", scaling with size and complexity. Expect separate line items for the title search, more than one wire, a deposit-only escrow if the deal falls through, holdbacks, and any International Registry work, which is rarely needed on a piston. Common allocations, all of which are negotiable:

• The escrow fee is split between buyer and seller, or paid by whichever side insisted on the agent.
• The buyer pays for its own title search, registration and lender costs.
• The seller pays to clear its own liens and fix any defects in the chain of title.

Do you need aircraft title insurance?

A title search tells you what the record shows. Title insurance pays for covered losses from defects the search missed or couldn't reveal, such as a forged signature back in the chain, an undisclosed interest, or a recording error. It is a one-time premium, generally scaled to the aircraft's value, sold by a few aviation title providers. Ask for a written quote and a copy of the policy's exclusions.

Decision rule: on a routine piston aircraft with a short, clean U.S. record, most buyers rely on the search and escrow filing. Price a policy when the record has gaps, the aircraft has been imported, an estate or bankruptcy sits in the chain, or the lender asks for one.

How to protect yourself from wire fraud

• Get the agent's wire instructions once, at the start, and verify them by calling a number you found yourself, not one in the email.
• Treat any "updated" wire instructions as fraud until proven otherwise by phone.
• Send a small test wire if the timeline allows, and confirm receipt before sending the balance.
• Never wire a deposit or purchase money directly to a seller or a seller's broker.

Common escrow mistakes that delay closing

• The buyer entity isn't formed, or its name differs between the purchase agreement, loan documents and registration application.
• The insurance binder is missing the lender as loss payee.
• The seller's payoff letter expires before the closing date.
• A co-owner's signature is missing from the bill of sale.
• Funds arrive after the agent's same-day filing cutoff, pushing closing to the next business day.

How this guide differs from related guides

This page is about choosing and working with the agent. How to read the search itself is covered in aircraft lien searches. Filling in the registration forms is covered in the FAA registration guide. The full schedule from offer to first flight is in the buyer's closing timeline. What the lender's filing does for it is explained in FAA lien recording.

Frequently asked questions

General information, not legal advice. Fees shown are samples for illustration. Get written quotes and have an aviation attorney review unusual title situations.