Aircraft Lien Check: What It Is, Why It Matters, and How to Do One

When someone finances an aircraft purchase, the lender typically files a security agreement with the FAA Civil Aviation Registry. This document puts the aviation world on notice that the lender has a financial interest in the aircraft — essentially, it's the aviation equivalent of a car loan lien.

Unlike car titles, which are held by the lender until the loan is paid off, aircraft registration doesn't work that way. An aircraft can be registered in the owner's name while a lien exists. If you buy that aircraft without checking for liens, you've potentially inherited the previous owner's debt.

How Aircraft Liens Work

Aircraft liens in the US are governed by the Federal Aviation Act and recorded with the FAA Civil Aviation Registry in Oklahoma City. Any creditor with a financial interest in an aircraft — a bank, aircraft finance company, or private lender — can record a security agreement against the aircraft's N-number and serial number.

These security agreements travel with the aircraft, not the borrower. If the previous owner sells the plane to you without paying off the loan, the lender's security interest in the aircraft doesn't disappear. In theory, a lender could pursue action against the aircraft even in your hands.

In practice, this scenario is uncommon — most aircraft sellers pay off financing at closing, and most buyers use title search services that catch liens before they become problems. But "uncommon" isn't "impossible," and the cases where it does happen tend to be costly.

What Types of Liens Appear on Aircraft Records

The most common liens you'll find in FAA records:

Aircraft security agreements: Filed by lenders who financed the aircraft purchase. These should be released when the loan is paid off, but releases aren't always filed promptly — or at all.

UCC filings: Uniform Commercial Code financing statements filed in a state can sometimes attach to aircraft when the aircraft is collateral for a non-aviation loan. These may not appear in FAA records but can still affect title.

Mechanic's liens: In some states, an A&P mechanic or repair station that wasn't paid for their work can file a lien against the aircraft. These are less common than mortgage-style liens but do occur.

Tax liens: Federal and state tax liens can attach to an individual's property, including aircraft.

How to Do an Aircraft Lien Check

Option 1 — FAA Registry direct search: You can search the FAA aircraft registry at faa.gov to see basic ownership and registration information. However, the registry's online search doesn't always show all recorded documents. For a complete picture, you need to request the full aircraft records file from the FAA.

Option 2 — Order FAA aircraft records: The FAA offers a records search service where you can order all documents on file for a specific N-number. This takes several days and gives you the raw documents to review.

Option 3 — Title search service: Companies specializing in aircraft title search review all FAA records and provide a clear report on what they find, including any active liens, unreleased security agreements, or title defects. This is the most reliable option.

Option 4 — Aeradex pre-purchase report: Aeradex pre-purchase reports include a lien check as part of the standard report, along with accident history, chain of title, and AD compliance. Your first report is free at aeradex.com.

What Happens If a Lien is Found

Finding a lien doesn't necessarily kill a deal. It depends on what type of lien it is and whether it can be resolved before closing.

Active loan lien: The seller needs to pay off the loan at or before closing, and the lender needs to file a release with the FAA. This is standard practice in financed aircraft sales.

Released but not filed: Sometimes a loan was paid off but the lender never filed the release with the FAA. The seller can contact the lender to get a formal release filed.

Unresolvable lien: If the seller can't account for or resolve an active lien, that's a serious problem. Walk away.

The Cost of Skipping the Lien Check

Aircraft lien checks cost between $0 (if you use a free service like Aeradex) and $85–$190 for professional title search services. The cost of buying a plane with an undisclosed lien can range from legal fees and months of headaches to, in extreme cases, losing the aircraft entirely to the lienholder.

Always do the lien check. It takes minutes and the information it provides is irreplaceable.