Q: I'm planning to purchase a used airplane in the next six months. I've heard some owners talk about not needing title insurance. Wouldn't this be required by a lender? I'm familiar with title insurance for a home purchase, but what exactly are the benefits of title insurance for an airplane purchase? A: Surprisingly, no, many lenders do not currently require title insurance on every transaction. Like a home, your aircraft also has a title history, which should be reviewed before buying. While most AOPA members know the importance of this and perform a title search prior to buying an aircraft, many may not know there are numerous scenarios where a lien or claim can end up in the FAA registry and/or otherwise "clouding" your ownership interest. By obtaining title insurance, the title insurance company will defend you legally against any bogus claims.
展开▼
