Aircraft (Airplanes, Helicopters, Engines) at Forced Sale
Asset hub page. Legal information, not legal advice. Last verified: 2026-10-16.
Overview
A forced sale of an aircraft is a sale the owner did not choose, compelled by (a) a court, (b) a government authority acting administratively, or (c) a creditor or lienholder using a statutory or contractual power without a court. Aircraft differ from real estate and from cars in three ways that drive every forced-sale outcome:
- Title lives in one federal file. There is no state certificate of title for a U.S. aircraft. Ownership and encumbrances are recorded with the FAA Aircraft Registry (49 U.S.C. §§ 44101–44113; 14 CFR Parts 47 and 49). Unrecorded instruments are valid only against the maker, heirs and devisees, and persons with actual notice (49 U.S.C. § 44108(a)); state laws giving effect to unrecorded transfers against innocent third parties are pre-empted (philko-aviation-v-shacket-1983). Agency detail: faa-aircraft-registry.
- Larger equipment has a second, international registry. Airframes certified for 8+ persons (or more than 2,750 kg of goods), helicopters for 5+ persons (or more than 450 kg), and engines of 550+ shaft horsepower or 1,750+ lb thrust are Cape Town “aircraft objects” whose international interests rank by registration at the International Registry (Aircraft Protocol art. I; Convention art. 29). Detail: cape-town-convention-aircraft.
- The asset’s value is in its paperwork. Airworthiness depends on maintenance records, airworthiness-directive compliance and inspections (14 CFR §§ 21.181, 39.7, 91.403, 91.409, 91.417). A forced-sale seller (sheriff, lender, repair shop, airport) is often not the operator and may not have the records — which the owner was required to keep and transfer at sale (§§ 91.417(b)(2), 91.419).
Pages in this section
- aircraft-title-liens-and-the-faa-registry — recording, priority, which liens appear where, and what each sale channel discharges.
- cape-town-convention-aircraft — international interests, U.S. declarations, IDERA, International Registry searches, § 1110.
- aircraft-mechanics-liens-and-non-judicial-sales — UCC Article 9 dispositions; Texas, Florida, Arizona, Rhode Island and North Carolina lien statutes; Washington and Texas abandoned-aircraft regimes.
- buying-an-aircraft-at-a-forced-sale — step-by-step playbook and underwriting checklist.
- faa-aircraft-registry — the agency, its forms, fees and limits.
- Case: philko-aviation-v-shacket-1983.
Comparison by sale channel
| Channel | Type | Who sells | Governing law | FAA evidence of ownership for the buyer | Discharges | Typically survives |
|---|---|---|---|---|---|---|
| Execution sale on a money judgment | (a) Court | Sheriff, constable or U.S. Marshal under a writ | State execution law; see sheriff-sale | Bill of sale by the officer “stating that the sale was made under applicable local law” (14 CFR § 47.11(c)) | Judgment debtor’s interest; junior interests per state law (needs_verification) | Senior recorded liens; registered international interests (Aircraft Protocol art. XIV(2), which replaces Convention art. 29(3) for aircraft objects) |
| Judicial foreclosure of an aircraft security interest | (a) Court | Sheriff or court-appointed officer | State foreclosure law; UCC § 9-609(b)(1) | Form 8050-4 + security agreement + bill of sale (§ 47.11(b)); certified foreclosure order (AC 8050-94, item 13) | Parties bound by the decree | Non-parties’ interests; senior interests |
| Court title determination (replevin, quiet title, declaratory judgment) | (a) Court | — (decree) | State law | Certified court decision (§ 47.11(d)); aircraft specifically described, owner of record a party (AC 8050-94, item 16) | As decreed | Non-parties |
| Bankruptcy § 363 sale | (a) Court | Trustee or debtor-in-possession | 11 U.S.C. § 363(b), (f), (m) | Sale order + trustee bill of sale + order appointing trustee (AC 8050-94, item 38) | Interests stripped under § 363(f) | Interests not stripped; see bankruptcy-363-sales |
| Airline equipment — § 1110 | (c) Creditor (inside bankruptcy) | Secured party/lessor after 60-day window | 11 U.S.C. § 1110 | Repossession papers (§ 47.11(b)) | Per UCC/contract | Senior interests |
| IRS levy sale | (b) Administrative | IRS | 26 U.S.C. §§ 6335, 6339 | Certificate of sale (§ 6339(a)); FAA acceptance needs_verification | Liens junior to the federal tax lien (§ 6339(c)) | Interests senior to the tax lien |
| Customs/drug administrative forfeiture sale | (b) Administrative | CBP / Treasury or DOJ components | 19 U.S.C. §§ 1607, 1609; 21 U.S.C. § 881(a)(4); 49 U.S.C. § 46306(d) | needs_verification | Title vests in the U.S. “free and clear of any liens or encumbrances” (19 U.S.C. § 1609(b)) | Innocent-owner protection in civil forfeiture (18 U.S.C. § 983(d)) |
| FAA civil-penalty lien enforcement | (a)/(b) Seizure, then in rem action | U.S. (Attorney General) | 49 U.S.C. § 46304 | Court order (§ 47.11(d)) | Per judgment | needs_verification |
| UCC Article 9 repossession and disposition | (c) Creditor | Secured party / lessor | UCC §§ 9-609, 9-610, 9-611, 9-617 | Form 8050-4 + security agreement + bill of sale (§ 47.11(b)) | Enforced interest and subordinate liens (§ 9-617(a)) | Senior liens; priority possessory liens (§ 9-333(b)); senior registered international interests |
| Cape Town chargee sale (Cape Town objects) | (c) Creditor | Chargee | Convention arts. 8, 29; Protocol art. IX; U.S. art. 54 declaration | As for repossession (§ 47.11(b)) | Per Convention and applicable law | Interests registered ahead (Convention art. 29(1); Protocol art. XIV(2)) |
| Mechanic’s / storage / fuel lien sale | (c) Lienholder | Repair station, FBO, hangar operator | e.g., Tex. Prop. Code § 70.305; A.R.S. § 33-1023; Fla. Stat. § 85.031(2) (applicability to aircraft needs_verification) | Bill of sale (§ 47.11(c)) + statute citation, compliance statement and evidence (AC 8050-94, item 15) | Statute-specific | Prior recorded liens where the statute subordinates (A.R.S. § 33-1022(B); R.I. § 34-47-4) |
| Airport abandoned-aircraft sale / disposal | (b) Administrative or (a) court | Airport operator / local government | RCW 14.08.122(4); Tex. Transp. Code § 22.901 | Bill of sale (§ 47.11(c)) or court order (§ 47.11(d)) | Statute-specific | Surplus held for “owner or owners and lienholders” (RCW 14.08.122(4)(d)) |
Some states route aircraft-lien enforcement through court rather than self-help — e.g., Rhode Island (R.I. Gen. Laws §§ 34-47-4, 34-35-1) and Arizona for a recorded non-possessory lien (A.R.S. § 33-1022(D)).
How the buyer gets registered
- File AC Form 8050-1 (Aircraft Registration Application), the channel-specific evidence of ownership above, and the USD 5 registration fee (14 CFR §§ 47.17, 47.31). Chain of title must run from the last registered owner (§ 47.35(a)(2)); if a link cannot be produced, other evidence “satisfactory to the FAA,” such as an affidavit (§ 47.35(b)).
- The buyer must be eligible: U.S. citizen, lawful permanent resident, or a non-citizen U.S. corporation whose aircraft is “based and primarily used in the United States” (49 U.S.C. § 44102(a); 14 CFR § 47.3); the FAA states this means 60% of flight hours on flights starting and ending in the U.S. (FAA, “Register an Aircraft”).
- The aircraft may not be operated unregistered except “for a reasonable period of time after a transfer of ownership, under regulations” (49 U.S.C. § 44101(b)(3)); the carried second copy of the 8050-1 is temporary authority within the U.S., not available once 12 months have passed since the first application after transfer (14 CFR § 47.31(c)).
- The airworthiness certificate stays effective only “as long as the aircraft is registered in the United States” and maintained under Parts 43 and 91 (14 CFR § 21.181(a)(1)). An aircraft that is not airworthy but “capable of safe flight” may be flown to a repair base or storage, or for delivery or export, on a special flight permit (14 CFR § 21.197(a)(1)–(2)).
Cost lines that recur across channels
| Cost line | Source / amount |
|---|---|
| FAA registration | USD 5 per aircraft (14 CFR § 47.17(a)(1)) |
| FAA recording of a conveyance | USD 5 per aircraft; no fee for a bill of sale accompanying registration, none for a release (14 CFR §§ 49.15, 49.33(e)) |
| FAA aircraft record copy | CD USD 10; paper USD 0.10/page; certification USD 10 (FAA records page) |
| International Registry priority search | USD 27 per search; user set-up USD 240/yr (ICAO Doc 9864, Procedures App. Table 1, 1/1/25) |
| Accrued storage, fuel, repair charges | Lienable in Texas (§ 70.301), Arizona (§ 33-1022), Rhode Island (§§ 34-47-1, -2); airport charges in Washington (RCW 14.08.122) |
| State sales/use tax | E.g., Florida taxes “Each occasional or isolated sale of an aircraft” at the 6 percent rate (Fla. Stat. § 212.05(1)(a)1.a.–b.); Texas taxes aircraft at the 6¼ percent state rate plus local tax (Tex. Tax Code § 151.051), with listed exemptions (certificated carriers, qualifying flight schools, out-of-state registration with certificate, listed agricultural uses; § 151.328) and the conditional “occasional sale” rules (§ 151.304); a forced sale or the use of an auctioneer alone establishes no exemption (texas 12.6) |
| Ferry / special flight permit, inspection, AD compliance, missing-records reconstruction | Not fee-scheduled in retrieved sources — market cost |
▸ For Buyers / Operators. The value-destroying risks are: a senior lien or registered international interest that the sale does not discharge; a federal tax lien filed in the owner’s home-state office (not in the FAA file — 14 CFR § 49.17(a)(2); 26 U.S.C. § 6323(f)); a possessory lienor still holding the aircraft; an engine owned or financed separately (Protocol art. XIV(3)); missing maintenance records and unknown AD status; and an IDERA that blocks export (14 CFR § 47.47(b)). Underwriting sequence: buying-an-aircraft-at-a-forced-sale.
▸ For Owners / Debtors. Notice and surplus rules depend on the channel: UCC § 9-611 notice of disposition; Cape Town art. 8(4) notice (10 working days deemed reasonable, Protocol art. IX(4)); state lien-statute notices (Tex. Prop. Code § 70.304; A.R.S. § 33-1023; RCW 14.08.122). Surplus provisions are collected in aircraft-title-liens-and-the-faa-registry. Bankruptcy stays most non-judicial sales (bankruptcy-automatic-stay-federal) except airline equipment under 11 U.S.C. § 1110.
Needs verification
- State execution-sale rules for aircraft (which liens a sheriff’s sale discharges) — not surveyed this session.
- Whether a forced sale is taxable (or “occasional”/exempt) under each state’s sales/use tax.
- FAA acceptance of IRS certificates of sale and forfeiture sale documents as evidence of ownership.
- California aircraft-lien limits: see aircraft-mechanics-liens-and-non-judicial-sales. Alaska’s completed general-lien, airport-disposal and federal ownership/recording reconciliation is in alaska; AS02.15.100 does not create a separate new aircraft-mechanic lien. Oklahoma’s recovered general-service/municipal-airport law and full Blue Sky review are in oklahoma, not still an unstarted statutory search.
Cross-links
assets, aircraft-title-liens-and-the-faa-registry, cape-town-convention-aircraft, aircraft-mechanics-liens-and-non-judicial-sales, buying-an-aircraft-at-a-forced-sale, faa-aircraft-registry, philko-aviation-v-shacket-1983, sheriff-sale, bankruptcy-363-sales, federal-tax-liens, power-of-sale, strict-foreclosure
Sources
- {statute, https://www.law.cornell.edu/uscode/text/49/44101, retrieved 2026-10-16} — 49 U.S.C. §§ 44101–44103, 44107, 44108 (same path, section number varies).
- {regulation, https://www.ecfr.gov/current/title-14/chapter-I/subchapter-C/part-47, retrieved 2026-10-16} — 14 CFR Part 47.
- {regulation, https://www.ecfr.gov/current/title-14/chapter-I/subchapter-C/part-49, retrieved 2026-10-16} — 14 CFR Part 49.
- {regulation, https://www.ecfr.gov/current/title-14/section-21.181, retrieved 2026-10-16} — 14 CFR § 21.181; also §§ 21.197, 39.7, 91.403, 91.409, 91.417, 91.419 (eCFR versioner API, 2026-10-01 edition).
- {agency guidance, https://www.faa.gov/sites/faa.gov/files/licenses_certificates/aircraft_certification/aircraft_registry/register_aircraft/8050-94.pdf, retrieved 2026-10-16} — AC 8050-94 (04/17).
- {agency page, https://www.faa.gov/licenses_certificates/aircraft_certification/aircraft_registry/register_aircraft/, retrieved 2026-10-16} — “Register an Aircraft” (60% flight-hours statement).
- {agency page, https://www.faa.gov/licenses_certificates/aircraft_certification/aircraft_registry/copies_aircraft_records, retrieved 2026-10-16} — record copy fees.
- {treaty, https://www.unidroit.org/english/conventions/mobile-equipment/mobile-equipment.pdf, retrieved 2026-10-16} — Cape Town Convention.
- {treaty, https://www.unidroit.org/english/conventions/mobile-equipment/aircraftprotocol.pdf, retrieved 2026-10-16} — Aircraft Protocol.
- {registry rules, https://www.internationalregistry.aero/ir-web/common/documentDownload?locale=en&documentId=4, retrieved 2026-10-16} — ICAO Doc 9864 (fees).
- {model law, https://www.law.cornell.edu/ucc/9/9-617, retrieved 2026-10-16} — UCC §§ 9-609, 9-610, 9-611, 9-617, 9-333 (same path pattern).
- {statute, https://www.law.cornell.edu/uscode/text/11/363, retrieved 2026-10-16} — 11 U.S.C. § 363; /11/1110 — § 1110.
- {statute, https://www.law.cornell.edu/uscode/text/26/6323, retrieved 2026-10-16} — 26 U.S.C. §§ 6323, 6335, 6339.
- {statute, https://www.law.cornell.edu/uscode/text/19/1609, retrieved 2026-10-16} — 19 U.S.C. §§ 1607, 1609; 21 U.S.C. § 881; 18 U.S.C. § 983; 49 U.S.C. §§ 46304, 46306.
- {statute, http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0212/Sections/0212.05.html, retrieved 2026-10-16} — Fla. Stat. § 212.05.
- {statute, https://tcss.legis.texas.gov/resources/TX/htm/TX.151.htm, retrieved 2026-10-16} — Tex. Tax Code §§ 151.304, 151.328.
- State lien and airport statutes: see aircraft-mechanics-liens-and-non-judicial-sales Sources.
- {case, https://www.law.cornell.edu/supremecourt/text/462/406, retrieved 2026-10-16} — Philko Aviation, Inc. v. Shacket, 462 U.S. 406 (1983).
Disclaimer. This page is legal information, not legal advice. It is a general summary that may be incomplete or out of date; law changes and its application is fact-specific and varies by state. Nothing here creates an attorney-client relationship. Verify every statute, regulation and holding against the current primary source and consult a licensed attorney before acting.