Escrow

In an aircraft transaction, an escrow agent holds the buyer's deposit and purchase funds, along with title documents, releasing them only when agreed conditions are met (clean title, accepted inspection, signed bill of sale). Escrow protects both sides and is standard practice, especially for cross-border deals.

Why it matters: aircraft transactions move large sums between parties who may never meet, across borders, against an asset whose title must transfer cleanly. Escrow solves this: a neutral specialist holds the deposit and purchase funds, verifies conditions are met, and releases money and title documents simultaneously so neither side is ever exposed.

In practice, specialist escrow agents sit in registry hubs and coordinate the closing choreography — deposit at letter of intent, funds before closing, then a synchronised release with registry filings. The fee is trivial against the transaction; experienced buyers and sellers treat escrow as non-negotiable, not optional.