Aircraft Broker Sales Agreement

The first step in closing an aircraft sale is to get an agreement with the customer you represent. Whether you represent the buyer or seller, you want to have a signed agreement in which your right to represent your customer in the sale transaction is clearly defined. Aircraft sales are similar to the real estate sector, as many brokers seek exclusive agreements with their clients. A well-established aircraft broker In a recent study, Jetcraft confirmed that 6% of Excel Fashion aircraft manufactured between 1998 and 2004 are for sale. Of the 6%, 86% of these aircraft are exclusive brokerage agreements. Large aircraft brokerage companies such as Viation have entered into exclusive contracts directly with companies such as PrivatAir of Switzerland to represent them in all aircraft purchases and sales. This will ensure that the brokerage company will be able to legally represent its clients and be properly compensated for its efforts. A brokerage contract should be written. Most brokers have some form of agreement, and you should check it out before making a final decision on which broker to keep. Agreements are being negotiated (see box). If you already know potential buyers for the aircraft, make sure that the agreement contains an exclusion that states that no commission (or a reduced commission if you want the broker to help you close the sale) will not be due if one of them buys at the end.

If you are looking for an aircraft-specific experience, you should keep the manufacturer to transmit your aircraft. Most business jet manufacturers have a division dedicated to the sale of used aircraft. For example, the Gulfstream site lists 12 used jets for sale, including five G650s. It is reasonable to conclude that these people are familiar with the Gulfstream market. The IADA site would be very simple your search, if not for the fact that the vast majority of aircraft brokers (including much more well-known) are not members of this organization. Many more are available on the website of the National Business Aviation Association, which has more than 500 companies active in aircraft sales. To whistle this list on a reasonable number of candidates, you need to consult people you know and trust. Companies that regularly deal with brokers, such as the . B, aircraft consultants and aviation lawyers are often good sources of remittances. Don`t choose a broker because he has the lowest commission. You don`t want to pay too much, but you also want to make sure that the company you`re hiring is really motivated to sell your plane. One of the reasons you should ask multiple brokers for proposals is to compare brokerage fees and marketing fee management.

You can negotiate your own pricing system. Instead of paying $150,000 to the broker, regardless of the sale price, you could, for example, offer to pay on a slippery scale: $130,000 at the X-price and $170,000 at the X-Y price. A good brokerage contract should say this: 8. The owner expressly agrees that brokers can work with other brokers of this type if warranted, and the owner promises to cooperate fully with brokers and any broker who works with the broker as part of this exclusive list agreement. Critical areas, where most transactions are generally failing, are due to the lack of a mandate agreement and the NND. Without these documents, the buyer will not publish the Proof of Funds (POF), the Aircraft Operator Certificate (AOC) and/or his professional and personal profile. In addition, without these documents, sellers or groups of sellers will not disclose all the details of the aircraft – since these documents signal to the seller that the buyer is a willing and capable buyer. Therefore, if they are not available with these documents, this can quickly lead to the disintegration of the agreement. However, the presentation of the mandate, the NCND and the AOC in advance allows for transparency and both the buyer and the seller can confirm the interest from a financial point of view.

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