Glossary
Escrow
A third-party service that holds purchase funds and documents during an aircraft transaction until all conditions are met.
Definition
In an aircraft purchase, escrow means a neutral third party — an aviation escrow company — holds the buyer's funds and the seller's aircraft documents (title, bill of sale) while both sides satisfy the agreed conditions. The escrow agent does not release funds to the seller until the title search is clear, the bill of sale is in order, and any other agreed conditions are met. Only then does the aircraft change ownership and the seller receive payment.
Why it matters in a transaction
Escrow protects both buyer and seller. For buyers: funds are not released until title is confirmed clean and documents are in order. For sellers: the aircraft does not change hands before payment is secured. Most reputable aircraft transactions, especially those with financing, use a professional escrow service. Wiring funds directly to a seller without escrow is a significant risk.
What TailExchange can help you see
TailExchange facilitates introductions between buyers and sellers. Once you decide to proceed, the transactional steps — including escrow — happen outside our platform through services you and the seller agree on.
What TailExchange cannot verify or replace
TailExchange does not provide escrow services and is not party to the financial transaction. For escrow, work with an aviation title and escrow company. AOPA has published guidance on using these services, and many aviation attorneys can recommend providers.
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