Operator Vs Ultimate Buyer

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If you are a buyer of a US registered aircraft, there are several hints that you may be involved in a back to back aircraft transaction.

First, you need to know that a back to back aircraft transaction involves the current owner of the aircraft (Owner) who enters into a contract to sell the aircraft to intermediary (Intermediary) and the Intermediary enters into a contract at the same time to sell the aircraft to the ultimate buyer (Ultimate Buyer). The plan is that on the closing date title transfers either directly from Owner to Ultimate Buyer or title transfers from Owner to Intermediary (without registration in the name of Intermediary) and immediately transfers to Ultimate Buyer which registered the aircraft with the FAA.

Did anyone tell you that the transaction is a flip or a back to back? Do you know why the transaction is configured as a back to back? If it is you, the Ultimate Buyer, who wants to remain confidential, then this may or may not be possible. If the Owner has a lender, the Owner’s lender may require that the Intermediary notify Owner’s lender in whose name the aircraft will be registered in order to satisfy export control and anti-money laundering laws and regulations. …show more content…

If not, ask why your contract is not with the registered owner.

Is it taking a long time to negotiate the purchase agreement and the purchase agreement comments you receive do not reflect your conversations with the “Seller” named in your purchase agreement?

What is your position, as the Buyer, if the Intermediary uses your deposit to become the deposit for the contract the Intermediary has with the Owner? A US escrow agent must (for anti-money-laundering and other governmental requirements) know all of the

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