Exam 3 Flashcards
What do you want to know when buying an a/c?
What am I really buying?
What are my rights if the a/c turns out to be a lemon?
Am I getting a clear a/c title?
Where are all the A/C records stored?
FAA a/c registry in OKC
What is a security interest?
Interest in an item of personal property that secures the payment if a debt
What do you want to know when selling an a/c?
Legal liability if the buyer suffers from buyers remorse
What will lending institutions be concerned with?
How can we assure that hew will get paid?
Will we have any liability if the a/c is involved in an accident?
What’s a possessory lien?
Business that provides services for the a/c can keep it until you pay the dues
What should you always do before buying an a/c?
Find out as much as you can about the a/c to prevent a possible law suit
What is a good practice when “closing” the deal?
Have the seller, buyer, lending institution and lien holder present
What should the buyer receive at the closing of the deal?
A signed bill of sale
What is a personal property tax?
Pay registration fee and specific ownership tax to state
What is the registration fee based on?
Weight of the a/c
What is the specific ownership tax based on?
Prescribed rate based on the blue book value of a/c
What happens if you don’t pay your a/c property tax?
State will repo your a/c and sell it
What happens if you don’t register your a/c and pay taxes?
It’s a misdemeanor
What’s a lease?
A contract that permits someone else to use an owners a/c
What’s leaseback?
The buyer purchases the a/c from the seller than leases it back to the seller for the sellers use
Which is used as a sales incentive?
Leaseback
Permits someone to buy something they could otherwise not afford
What’s the problem with a leaseback?
The owner pays for everything
What should you do as a lessor?
Check the lessees credit rating
Inquire previous lessors about experience, timely payment, a/c care and mx
Make sure the a/c will not be used for illegal purposes
What happens if your lessee uses the a/c for illegal activities?
A/C may be seized or forfeited by the government
What should be included on an a/c lease contract?
Who's the operator Do they use it all the time Who's doing the inspections Who's paying the expenses Who's paying the insurance Who's paying for Crew expenses Is a Hobbs or tach used How long is the lease for