Lien on plane in Ontario

[PilotDAR]

On behalf of a friend;

A friend is planning to sell a family asset plane. A prospective purchaser has come back indicating the existence of a lien on that plane. I believe that when the plane was purchased by another family member, that lien was probably already applied, as it would not have come on while in this family's ownership. Has anyone had experience with liens on planes? How does the present aircraft owner identify the lien holder, and clear the lien? Is there any mechanism during the change in registration for a lien to be flagged, if the purchaser is unaware? I'm told that cars cannot be sold and carry a lien over during a sale, is it different with planes?

I have no interest in this, I'm just trying to help a friend get out from under an un needed airplane as a family asset. Comments of experience would be appreciated....

[boeingboy]

A simple lien search will bring up any liens against said vehicle and who put it on there. After that it's up to the owner to deal with it. Sometimes you can get out of it if the other party has not pursued it, or sometimes the have been settled but the lien not removed - but it can also be a major headache. I always have done a lien search as part of a pre but - whether it be an airplane, car, boat, whatever. They can be in force for a long time and you can sell the vehicle over and over.....It only really becomes an issue if you try to sell it to another country as usually the export country will not allow it until the lien is removed.

[Heliian]

I've seen it multiple times where the lien is cleared but never removed from the title until someone goes poking or for a sale. You then have to go through the motions with the issuer again to have it visibly removed. A real bureaucratic p.i.t.a.

[PilotDAR]

Thanks for the replies, so far, no clear answer seems to be available. In this case it seems that it would be better if planes were registered like cars!

[Capt. Underpants]

I'm surprised the lien didn't show up during the previous purchase. I would never purchase a high dollar item like a home, car or plane without seeing a signed declaration from the previous owner that the property was free and clear.

[Heliian]

I'm surprised the lien didn't show up during the previous purchase. I would never purchase a high dollar item like a home, car or plane without seeing a signed declaration from the previous owner that the property was free and clear.

That's the problem, they did have the proper paperwork but the government or municipality drops the ball. You just have to keep chasing it down until the record is cleared. Even RBC has had these issues, it's not limited to a specific lender or persons.

[pelmet]

A simple lien search will bring up any liens against said vehicle and who put it on there. After that it's up to the owner to deal with it. Sometimes you can get out of it if the other party has not pursued it, or sometimes the have been settled but the lien not removed - but it can also be a major headache. I always have done a lien search as part of a pre but - whether it be an airplane, car, boat, whatever. They can be in force for a long time and you can sell the vehicle over and over.....It only really becomes an issue if you try to sell it to another country as usually the export country will not allow it until the lien is removed.

How do you do a lien search on an airplane.

[Heliian]

A simple lien search will bring up any liens against said vehicle and who put it on there. After that it's up to the owner to deal with it. Sometimes you can get out of it if the other party has not pursued it, or sometimes the have been settled but the lien not removed - but it can also be a major headache. I always have done a lien search as part of a pre but - whether it be an airplane, car, boat, whatever. They can be in force for a long time and you can sell the vehicle over and over.....It only really becomes an issue if you try to sell it to another country as usually the export country will not allow it until the lien is removed.

How do you do a lien search on an airplane.

https://www.ontario.ca/page/register-se ... access-now

[JasonE]

Don't forget you need to search each province separately. If the plane moved from, Albert to Ontario, it might have something registered there.

[boeingboy]

The government in each province or territory has a Personal Property search available for a nominal fee.