One of the most overlooked steps in buying an aircraft is the lien search. Unlike cars, where liens show up clearly on a title report, aircraft lien records require a specific search of FAA documents — and the consequences of missing one can be severe.
Here is how aircraft liens work, why they matter, and how to search for them.
How Aircraft Liens Work
Aircraft are personal property under federal law, and the FAA acts as the central registry for aircraft ownership and encumbrances. When a lender finances an aircraft purchase, they record a security interest with the FAA Aircraft Registry in Oklahoma City. When a mechanic is not paid for work, they can file a mechanic's lien. Storage facilities can file liens for unpaid hangar fees.
All of these are recorded with the FAA — not with any state agency.
This is why a standard car title search is worthless for aircraft. You have to go directly to the FAA records.
Why This Matters to Buyers
If you purchase an aircraft with an undiscovered lien, that lien does not disappear at closing. The lienholder's claim on the aircraft survives the sale. In practical terms, this means:
- A lender can repossess the aircraft even though you now own it
- A mechanic or storage facility can demand payment or force a sale
- You may need a court process to clear the title
This has happened to real buyers. The only protection is finding liens before you close.
How to Search FAA Lien Records
Option 1 — FAA Aircraft Registry Website
The FAA maintains a public registry at registry.faa.gov where you can search by N-number. The registry shows current ownership and registration status, but the document images require additional searching.
For a full lien search, you need to review the document history — not just the current registration card. This means looking at the full chain of title documents filed with the FAA.
Option 2 — Title Search Companies
Several companies specialize in aircraft title searches. They search the FAA microfilm records, UCC filings, and state records to produce a comprehensive title report. A professional aircraft title search typically costs $100–$300 and takes a few business days.
For any significant aircraft purchase, a professional title search is worth the cost.
Option 3 — Aeradex Pre-Purchase Report
An Aeradex pre-purchase report includes a lien indicator check as part of the FAA registry data, giving you a quick view of the aircraft's encumbrance status before you invest time in a full inspection.
Get Your Pre-Purchase Report →
Types of Liens to Watch For
Lender security interests: The most common lien. If the seller financed the aircraft and still owes the lender money, that security interest is recorded with the FAA. The sale proceeds should pay off the loan at closing, but verify this is handled correctly.
Mechanic's liens: An A&P or maintenance shop that was not paid for work can file a lien against the aircraft. These can be small or surprisingly large depending on the work performed.
Storage liens: FBOs and hangar operators can file liens for unpaid tie-down or hangar fees. These are less common but do occur.
Tax liens: Federal and state tax liens can attach to aircraft in some circumstances.
What Happens at Closing
In a properly structured aircraft sale:
- A title search is completed before closing
- Any existing liens are identified
- Lien payoff amounts are requested from each lienholder
- At closing, liens are paid off from the sale proceeds
- Lien releases are recorded with the FAA
- The new registration is filed in the buyer's name
If you are paying cash directly to an individual seller without a title company or escrow, you are taking on risk. The seller may not pay off existing liens with the proceeds, leaving you holding an encumbered aircraft.
Using an Aircraft Title Service
For anything other than a low-value aircraft sale between known parties, using a title and escrow service is strongly recommended. These companies:
- Conduct the title search
- Hold purchase funds in escrow
- Coordinate lien payoffs
- File the new registration with the FAA
- Record lien releases
Aeradex offers aircraft title transfer services that walk you through the complete ownership transfer process, including the FAA filing requirements.
Learn About Aircraft Title Transfer →
The Bottom Line
A lien check is not optional for serious aircraft buyers. The FAA filing system protects lienholders, which means their claims survive an uninformed sale. The only way to protect yourself is to find every lien before you close and make sure they are paid off and released as part of the transaction.
Spend the money on a proper title search. It is a small cost relative to the price of any aircraft and the potential cost of inheriting someone else's debt.