Long-standing business relationships are based on good business. And good business is based on trust, integrity, and reliability. As escrow agents, we seek to assist business partners who are initially unfamiliar with one another, help them gain each other’s trust and confidence step by step. This is particularly important in the case of complex business transactions. Walk the talk.
It is not only aircraft that are complex systems; the sales process is also challenging and has to be moved forward with the greatest of care and diligence. For this reason a procedure was developed that enables both parties to get closer gradually and with no risk.
A business transaction brought to a successful conclusion, to everyone’s satisfaction – in that case, the escrow agents have fulfilled their most important task.
Sales of aircraft are regularly instigated by contact between the buyer and the supplier being established by go-betweens. To begin with, the structured sales process ensures the confidentiality of the negotiations that the parties enter into. Various steps follow, in which information is mutually exchanged. Following conclusion of the Letter of Intent (LOI) initial payments are made to an account held by the escrow agents, which are repaid by a certain point in time should the buyer withdraw from the transaction. The business deal is concluded on delivery of the aircraft and payment of the purchase price. As escrow agents, we accompany the entire process and ensure compliance with it at all times.
Once all terms and conditions of the contract have been fulfilled and the buyer does not voice any objections within the time limit, the contract becomes valid. Therefore, the seller can be assured that he will receive all the funds and the buyer his aircraft. Ownership transfer takes place for both parties.
The exact procedure of the individual steps is defined by the “Procedure for the Purchase of new (or used) Aircraft“. If you read this document very carefully and follow the described steps, your deal is sure to be successful.
Electronic documents and originals of signed agreements can be deposited with the escrow agent. They are stored for at least 10 years.
The escrow service instills the greatest of confidence in all the parties involved in the settlement of an important, but complex business transaction.
Martin F. Nussbaum
Legal Counsel / Escrow Agent