Introduction: Securing Ownership in Aviation
Acquiring, leasing, or financing an aircraft involves multi-million dollar investments where the cost of a legal error is extremely high. Aircraft Title Documentation is a fundamental process that ensures the confirmation of clean title to the asset and protection against third-party claims. In any transaction, whether buying a commercial airliner or leasing a private jet, it is critically important to determine if the aircraft is free from liens, mortgages, or other legal encumbrances. In Georgia, which is a party to international aviation conventions, maintaining perfect title documentation is essential not only under local law but also to satisfy the requirements of international creditors and lessors. This service represents the backbone of aviation transactions, ensuring peace of mind for the parties and the validity of the deal.
What Does Title Documentation Service Cover?
The service involves drafting, reviewing, and registering all legal documents related to the aircraft. Specialists ensure:
- Chain of Title Research: Studying the history of previous owners to confirm that the transfer of ownership occurred legally at every stage.
- Drafting Bill of Sale: Creating a document compliant with international standards that proves the transfer of title from seller to buyer.
- Lien Search: Searching registries for information regarding any attachments, pledges, or other obligations on the aircraft.
- Mortgage and Pledge Registration: Registering security interests on the aircraft for banks and financial institutions.
- Legal Analysis of Lease Agreements: Checking the terms of operating and finance leases for compliance with Georgian legislation.
- Registration of International Guarantees: Reflecting interests in the International Registry under the Cape Town Convention.
Common Situations and Scenarios
One of the most common scenarios is purchasing a pre-owned aircraft. The buyer needs a guarantee that the seller truly has the right to alienate and that the aircraft is not pledged due to the previous owner's debts. A lawyer conducts full "Due Diligence" and checks the chain of title from the date of manufacture. A second scenario involves an airline leasing an aircraft. The lessor demands that their ownership right be clearly reflected in the Georgian registry, while the airline only has operator rights. A third case involves separate registration of engines and propellers: often, aircraft engines belong to a different company than the airframe. Proper separation of title documentation is essential to avoid disputes.
Georgian Legal Framework
Issues of aircraft ownership are regulated by the Civil Code of Georgia and the Air Code of Georgia. Registration of ownership rights is carried out by the Civil Aviation Agency according to the "Rule on Registration of Civil Aircraft." At the international level, the Cape Town Convention on International Interests in Mobile Equipment, to which Georgia is a party, is crucial. This convention creates an international standard for protecting creditors' rights and determines the priority of "international interests." When drafting documentation, the Law on Private International Law must also be considered if a foreign element is involved in the transaction.
Process: How is Documentation Handled?
The process begins with structuring the transaction. Lawyers determine the list of necessary documents (Bill of Sale, Lease Agreement, Power of Attorney). Then these documents are notarized and legalized with an Apostille (if a party is foreign). An important stage is translating and adapting documents for Georgian legislation. The completed package is submitted to the Civil Aviation Agency, which verifies the correctness of the documents and registers the ownership right in the registry. Parallelly, registration in the Cape Town International Registry (online platform) might be required.
Why Choose a Specialist on Legal.ge?
Aviation is a field where standard "template" contracts do not work. Legal.ge gives you access to aviation law experts who have experience in complex, cross-border transactions. Our specialists ensure that your title documentation is flawless, protecting your asset from legal risks and simplifying future transactions. Trust qualified lawyers to keep your investment secure.
Updated: ...