ÐÏࡱá>þÿ tvþÿÿÿefghijklmnopqrsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿì¥ÁU@ ø¿ˆñbjbj¬›¬› bØÎñÎñRé5ÿÿÿÿÿÿˆäääääää4àààhHÌÌ Ï¢ì#’~2”2”2”2ÿ3œ2›f|u@OÎQÎQÎQÎQÎQÎQÎ$¬ÐRþÒŒuÎä?Çû3ÿ3?Ç?ÇuÎää”2”2gŠÎ89Ë9Ë9Ë?Çä”2ä”2OÎ9Ë?ÇOÎ9Ë9ËQËrͳÈääñÆ”2à# PÁl_'ÍÇàQÈ‚•ÂÃÊŒÂÎH Ï£ÃNŠÓÓÈDŠÓñÆ,ääääÇ"ŠÓä?Ç„W|f½•$9Ëᧄe¶ÚW|W|W|uÎuÎ(0ÄëË"0The COPA Guide To Buying an Aircraft 31st Edition – July 2007 Copyright Canadian Owners and Pilots Association 2007  The Canadian Owners & Pilots Association 207 - 75 Albert Street, Ottawa, Ontario K1P 5E7 Canada Tel: 613-236-4901 ( Fax: 613-236-8646 ( Email:  HYPERLINK "mailto:copa@copanational.org" copa@copanational.org Website:  HYPERLINK http://www.copanational.org www.copanational.org Contents Part I HYPERLINK \l "Planeofyourown"An Airplane of Your Own?  HYPERLINK \l "Scopeofthisguide" Scope of this Guide  HYPERLINK \l "Certifiedaircraft" Used Certified Aircraft  HYPERLINK \l "Newcertifiedaircraft" New Certified Aircraft  HYPERLINK \l "Ownermaintenance" Owner Maintenance Aircraft  HYPERLINK \l "Exmilitarytypes" Ex-Military Types & The Limited Category  HYPERLINK \l "Amateurbuilts" Amateur builts  HYPERLINK \l "ultralights" Ultralights  HYPERLINK \l "Aircraftkitsandplans" Aircraft Kits & Plans  HYPERLINK \l "Foreignaircraft" Foreign Aircraft  HYPERLINK \l "PressureizedTurbine" Pressurized Turbine?  HYPERLINK \l "Whichaircraftisrightforyou" Which Type is Right for You?  HYPERLINK \l "WhocanownCdnaircraft" Who Can Own a Canadian Aircraft?  HYPERLINK \l "Findinganaircraft" Finding an Aircraft  HYPERLINK \l "Contactingaseller" Contacting a Seller  HYPERLINK \l "OutOfTen" Out of Ten?  HYPERLINK \l "Inspectingtheaircraft" Inspecting the Aircraft  HYPERLINK \l "Flybeforeyoubuy" Fly Before You Buy  HYPERLINK \l "Howmuchisitworth" How much is it worth?  HYPERLINK \l "FlyingJunk" Flying Junk  HYPERLINK \l "Howmuchwillitcosttoown" How much will it cost to own?  HYPERLINK \l "AircraftPartnerships" Aircraft partnerships  HYPERLINK \l "makinganoffertopurchase" Making an offer to purchase  HYPERLINK \l "Givingtheselleradeposit" Giving the Seller a Deposit  HYPERLINK \l "Titlesearchandliens" Title search and liens  HYPERLINK \l "somedeatailsforiegnaircraft" Some Details about Foreign Aircraft  HYPERLINK \l "Keeping" Keeping It Foreign Registered? HYPERLINK \l "Takingdelivery"Taking Delivery  HYPERLINK \l "Escrow" Escrow  HYPERLINK \l "Completeingthesale" Completing the Sale  HYPERLINK \l "Taxes" Taxes  HYPERLINK \l "Aircrafttypetraining" Aircraft type training  HYPERLINK \l "Insurance" Insurance  HYPERLINK \l "Aircraftfinancing" Aircraft Financing  HYPERLINK \l "AircraftBrokersAndDealers" Aircraft Brokers & Dealers  HYPERLINK \l "UsefulResources" Useful Resources  HYPERLINK \l "TypeClubs" Aircraft Type Clubs  HYPERLINK \l "PurchaseChecklist" Aircraft Purchase Checklist Part II  HYPERLINK \l "Articles" Articles on Buying an Aircraft:  HYPERLINK \l "BuyingYourFirstAircraftBePatient" Buying Your First Aircraft? Be Patient! By Darin and Lisa Graham  HYPERLINK \l "TheFirstYearofOwnership" The First Year of Aircraft Ownership by Darin and Lisa Graham  HYPERLINK \l "AFPartnershipsEngineoverhauls" Affordable Flying - Partnerships and Engine Overhauls  HYPERLINK \l "AFPartnerships" Affordable Flying – Partnerships  HYPERLINK \l "AFGettingAlongInPartnerships" Affordable Flying - Getting Along in Partnerships  HYPERLINK \l "AFAppreciatingDepreciation" Affordable Flying – Appreciating Depreciation  HYPERLINK \l "AFWhenBuyingUsedAircraft" Affordable Flying – When Buying a Used Aircraft  HYPERLINK \l "CanadianDollar" Aircraft Prices in 2007 – Where Are They Going? By Adam Hunt (written in June 2007)  HYPERLINK \l "UnderstandingAviationInsurance" Understanding Aviation Insurance by Herb Cunningham  HYPERLINK \l "BrokersAndDealers" What You Need to Know About Aircraft Brokers and Dealers by Garth Wallace Part III  HYPERLINK \l "Forms" Forms:  HYPERLINK \l "PartnershipAgreement" Partnership Agreement Sample #1  HYPERLINK \l "PartnershipAgreement2" Partnership Agreement Sample #2  HYPERLINK \l "OfferToPurchase" Offer to Purchase  HYPERLINK \l "AircraftBillOfSale" Aircraft Bill of Sale  HYPERLINK \l "ReceiptForAircraftPurchase" Receipt for Aircraft Purchase The COPA Guide to Buying an Aircraft  Part I An Airplane of Your Own? Most pilots learn to fly on rented aircraft. After earning their pilot’s licence they continue to rent airplanes, often from the same school at which they learned to fly. For many pilots the shortcomings of renting quickly become apparent – you can’t take the plane away without paying a minimum charge per day, even if it is just parked at destination. Other shortcomings of renting include a very limited number of types available to rent, that the plane may not be available when you want and even that some rental aircraft may be a bit worn out and not very lovingly cared for. At some point most pilots start dreaming of the advantages of owning their own aircraft. Just think, a myriad of different types that you could possibly own, fly whenever you want – the aircraft will be always available. Owning can be a lot cheaper than renting, especially if you fly a lot. And you can maintain it and equip it the way that you want to. It would be yours! Of course there are disadvantages, too – when it breaks you would have to fix it or pay to have it fixed. Owning may be more expensive than renting, especially if you don’t fly very much. You have to consider things that the renter-pilot doesn’t, like where to store the plane, who to get to maintain it and so on. For most pilots the choice is easy – owning beats renting for them. It is true that most pilots who once own an airplane don’t happily go back to renting again! This COPA Guide is designed to help you understand what is involved in buying your own airplane – to take the mystery out of the process. Any pilot can own an airplane – the greatest barrier should be the cost, not learning how to buy an airplane! Scope of this Guide This guide is the newest version of a long-standing and very popular COPA Guide. The original book was entitled The COPA Guide to Buying a Used Aircraft in Canada and dealt exclusively with buying used, certified aircraft in Canada. This version has been expanded and discusses buying new and used aircraft, certified, amateur-built, owner-maintenance category, ultralights, warbirds, kits and foreign aircraft. There are lots of categories to choose from! Suggestions for improvements to this COPA Guide are welcome! COPA updates and rewrites its COPA Guides on a regular basis to keep them up to date and relevant. Send your suggestions for improvements to  HYPERLINK "mailto:benefits@copanational.org" benefits@copanational.org. NOTE This guide contains information of a general nature only. It should not be considered a definitive document. Use of this guide does not make COPA responsible for legal action taken against you. Individual circumstances involving aircraft, and aircraft sales and the law vary greatly. Ensure that you read and understand the current CARs before buying and flying! For information that applies to your individual circumstances consult an aviation lawyer. Note on Links: Blue links in this COPA Guide will lead you to external webpages and places within the Guide itself. Green links will take to you pages in the “Members Only” section of the COPA website. Your membership number and last name “all in capital letters” are required for access to these pages. Used Certified Aircraft Certified aircraft have a standard Certificate of Airworthiness (C of A) and therefore meet all the applicable certification requirements. Most pilots learn to fly on certified aircraft, so those are most familiar to them... Importing and exporting certified aircraft is a fairly simple venture in Canada. Certified aircraft include popular light airplanes such as the Cessna 150, 152, 172, Piper Cub and Cherokee, Beechcraft Bonanza, Mooneys, Maules and other well known brands. This category also includes certified gliders, helicopters, balloons, airships and even some certified gyroplanes. These are factory-produced aircraft and they must have their maintenance release signed by an AME after maintenance work is completed. Certified airplanes have very predictable handling characteristics – they are stable and generally non-demanding to fly compared to some ultralights and home builts. New Certified Aircraft If you have decided to buy a factory new certified aircraft congratulations! This is definitely an easy way to go! You won’t have to worry about liens and title searches, pre-purchase inspections and other factors that are important when buying a used aircraft. Your new aircraft will come with a warrantee that will cover any defects for the first year or more. Also, new airplanes are not usually “high-maintenance”, unlike some older aircraft. Your new aircraft will likely be well equipped with state-of-the-art avionics and the latest in safety and comfort features. What more could you ask for? The downside in buying a new aircraft is that they are expensive! Not only is the purchase price higher than a used aircraft, but the insurance premiums will be proportionally high as well. This can make operating a new aircraft a lot more expensive than operating an older model of the same type. The other factor that you will have to consider is depreciation. New aircraft lose their value, just like new cars do. For example, a 1999 Cessna 172R lost 28% of its value since new, between 1999 and 2004 or an average of almost 6% per year. Diamond Katanas lost 56% of their value between 1995 and 2004 or about 6% per year! For more information on depreciation see the article at the end of this book entitled  HYPERLINK \l "Appreciating" Appreciating Depreciation. Owner Maintenance Aircraft O-M aircraft is a new category in Canada and it is unique in the world right now. No other country allows O-M aircraft! The O-M category is for older certified aircraft including many “orphaned aircraft” that are no longer supported by their manufacturers. This category allows an owner, who is a pilot, to sign the maintenance release and to use non-certified parts on the aircraft. The main aim is to keep older planes flying and some wonderful things are being done in this category. O-M aircraft operate with a Special Certificate of Airworthiness – Owner Maintenance as their flight authority. Currently O-M aircraft are not permitted in US airspace – a definite consideration if you are thinking of buying an aircraft in this category. This situation does not look like it will change in the near future. If this category interests you please refer to HYPERLINK "http://www.copanational.org/members/COPAGuides/COPA%20Guide%20to%20the%20Owner-Maintenance%20Aircraft%20Category.htm"  The COPA Guide to the Owner Maintenance Category, a book that offers complete information on putting aircraft in this category, maintaining them and flying them. The balance of this guide will just provide information about buying O-M aircraft. Ex-Military Types & The Limited Category Who hasn’t thought about streaking across the countryside in their own T-33 or splashing down in a lake somewhere in a float-equipped UTVA-66? Military aircraft have a romance all their own that lures many aviators. Under the new CAR rules introduced by exemption in March 2002 many ex-military aircraft can now be owned and flown for recreational purposes. The rules are pretty straightforward and basically if you can show Transport Canada that you can maintain it then you can own it and fly it. These aircraft operate under a Special Certificate of Airworthiness – Limited. Currently the rules are contained in an exemption to  HYPERLINK "http://www.tc.gc.ca/aviation/applications/exemptions/docs/en/1427.htm" CAR STD 507 Appendix F. COPA has a new book that is a useful introduction to these aircraft called the HYPERLINK "http://www.copanational.org/members/COPAGuides/COPA%20Guide%20to%20The%20Limited%20Class.htm"COPA Guide to the Limited Class that explains the category and how it works. Under these rules, all ex-military and other non-type certified aircraft in this category are divided into different groups with regard to their maintenance requirements: Group 1 consists of gliders, balloons, piston-powered rotorcraft, basic training and communication aeroplanes, light transports, and equivalent aircraft types (total horsepower below 1000 BHP). Aircraft in this category are maintained by an appropriately qualified AME. Group 2 consists of turbine-powered rotorcraft; World War II era aircraft, including fighters, medium bombers and transports; basic jet trainers; advanced piston-powered trainers; Korean War era aircraft, including first generation jet fighters; and equivalent aircraft types. Aircraft in this category are maintained by an AME with an appropriate Restricted Certifying Authority (RCA) or by an appropriately qualified Approved Maintenance Organization (AMO). Group 3 consists of all aircraft not included in Groups 1 or 2. This includes jet fighters and other similar types. Aircraft in this category are maintained by an appropriately qualified Approved Maintenance Organization (AMO). It is worth noting that many “ex-military aircraft” don’t come under the rules for the Special Certificate of Airworthiness – Limited. Aircraft such as the Harvard, Tiger Moth and Chipmunk all have Type Certificates and are eligible for standard Certificates of Airworthiness because they are certified aircraft. Check out the paperwork requirements carefully while you are researching the aircraft you are interested in. Amateur Builts Buying a used amateur built aircraft is often a good way to get a lot of performance for a reasonable price. It is also a great way to find an affordable helicopter or gyroplane. Many people buy used amateur-built aircraft because they want an interesting aircraft that they can maintain themselves, but who don’t have the time available to build one of their own from plans or from a kit. Amateur built aircraft are subject to pre-cover and pre-first flight inspections from an  HYPERLINK "http://www.md-ra.com/" MD-RA Inspector before they get their flight authority for the first time, so there is quality control in their construction. They fly under a Special Certificate of Airworthiness – Amateur Built. Even if you buy a used amateur built aircraft the owner is permitted to do all the work on the aircraft and also sign the maintenance release for the work completed. There is a huge variety of aircraft that fit into this category – airplanes, helicopters, gliders, balloons, airships and gyroplanes to name some possibilities. Amateur built airplanes are limited to four seats maximum in Canada. The airplanes are also limited to a maximum of 5,000 lbs gross take-off weight and a wing loading of 13.3 lb/sq ft without flaps and 20.4 lb/sq ft if equipped with flaps. Amateur builts with higher wing loadings are permitted, but they are considered “high performance” and the pilot will need a type rating. There are similar limitations that apply to gliders and other categories. Complete rules for this category can be found in an exemption to HYPERLINK "http://www.tc.gc.ca/aviation/applications/exemptions/docs/en/1298.htm"CAR STD 507 Appendix C that came into effect in 2002. Once completed and flying, amateur built aircraft comply with the same flying rules that govern certified aircraft. COPA has a guide that gives lots of information on amateur-built aircraft  HYPERLINK "http://www.copanational.org/members/COPAGuides/COPA%20Guide%20to%20Amateur-Builts.htm" The COPA Guide to Amateur Builts. Reading this book is a must if you are considering buying an amateur-built. Ultralights Until 2005 ultralights had been the fastest growing segment of aviation in Canada, since 2005 certified aircraft held that honour. New ultralights added to the Canadian Civil fleet still account for a large proportion of the aircraft registered each year. For some people, ultralights are the only affordable form of flying available. Other pilots could afford a bigger and more expensive aircraft but enjoy the simplicity of open cockpit “low-and-slow flight” that is the hallmark of ultralight flying. That said there are some very fast and cross-country capable ultralights being flown in Canada. There is no doubt that ultralights are great fun to fly and are relatively inexpensive to own and maintain. HYPERLINK "http://www.tc.gc.ca/CivilAviation/Regserv/Affairs/cars/PART6/602.htm" \l "602_29"CAR 602.29 and the Transport Canada  HYPERLINK "http://www.tc.gc.ca/CivilAviation/general/recavi/Ultralight/ULTransitionStrategy/menu.htm" Ultralight Transition Strategy currently govern ultralights. Once incorporated, these rules will all become part of the CARs and will be found in the CAR 603 and 605 series. The only permitted uses for ultralights are private recreational flying and commercial flight instruction, rental and towing hang gliders. Other commercial uses such as crop spraying, aerial photography, towing gliders, carrying freight or passengers for hire are not permitted. The Canadian ultralight category is quite different from that found in the USA, although the US is finally catching up to Canada with its  HYPERLINK "http://www.sportpilot.org/learn/aircraft.html" Light Sport Aircraft Category. It is also quite different from the European FAI “Microlight” category. Canadian ultralights come in two flavours – Basic Ultralights (BULA) and Advanced Ultralights (AULA). Basic Ultralights are the original ultralights. They were first developed in the mid-1970s, not by shrinking conventional airplanes, but by putting a motor on an Easy Riser biplane hang glider. Today in Canada, the rules have evolved over time and basic ultralights may currently have one or two seats, weigh up to 1200 lbs take-off weight and have a stall speed of 39 knots (45 mph) or less. Basic ultralights are not permitted to carry passengers, although they may be flown with two pilots on board or with a student and instructor. Helmets are required when flying basic ultralights. There are no specific maintenance requirements for basic ultralights, but protecting your investment and yourself means taking good care of your basic ultralight. Basic ultralights are all registered in the series starting with C-I. Advanced ultralight airplanes (AULAs) started as a new category here in Canada in 1991. They are single or two seat airplanes that comply with the Light Aircraft Manufacturer’s Association of Canada (LAMAC) publication called HYPERLINK "http://www.lamac.ca/DS10141%20page.htm"Design Standards for Advanced Ultralight Aeroplanes. AULAs must be purchased as a kit or complete aircraft. For quality control reasons they cannot be built from plans. Changes were made to the category in June 2001 and, as a result, AULAs can now weigh up to 770 lbs for single seaters and 1232 lbs for two seaters. Under the revisions to the category, powered parachutes and hang glider-based trike ultralight designs may now qualify as AULAs. AULA aircraft types are added to the TC  HYPERLINK "http://www.tc.gc.ca/civilaviation/general/CCARCS/advancedullist.htm" Listing of Models Eligible to be Registered as Advanced Ultra-Light Aeroplanes (AULA) when the manufacturer signs a Declaration of Compliance (D of C) for the type and TC accepts it for the list. Individual AULAs get their status from a Statement of Conformity (S of C) that the manufacturer issues when the plane is built. This S of C indicates that the plane conforms to the standard for the type. The S of C allows the AULA to be registered with Transport Canada as an advanced ultralight. AULAs cannot be modified without the written authority of the manufacturer and they must be maintained in accordance with the manufacturer’s instructions. If an AULA is modified without permission from the manufacturer or not maintained as required then its Certificate of Registration will be cancelled. These aircraft may be re-registered in the basic ultralight category, if they qualify to do so, and will lose their passenger carrying status. Note that an AULA that has a gross take-off weight between 1200 and 1232 lbs cannot revert to the BULA category currently and will be grounded if it fails to continue to meet the AULA requirements, unless it can fit into the  HYPERLINK \l "Exmilitarytypes" Limited Class. Maintenance records are required are required for all AULAs. Used AULAs must have a Fit for Flight Form (FFFF) completed by the previous owner or else they cannot be re-registered in the name of the new owner as an AULA. See the  HYPERLINK "http://www.tc.gc.ca/civilaviation/general/recavi/Ultralight/ULTransitionStrategy/advanced.htm" \l "Transfer" Ultra-light Transition Strategy for more details on this requirement. AULAs can carry a passenger, if the pilot is qualified to carry a passenger. This currently requires at least a Pilot Permit - Ultralight Aeroplanes with the Passenger Carrying Rating. Helmets are not required to be worn in AULAs, but may be a good idea depending on the design. Starting at their inception in 1991, AULAs were registered in the C-F or C-G series, but since January 1997 they have been registered in the C-I series, like all other ultralights. There are still quite a number around that have C-F or C-G registrations. COPA has a guide to ultralights that provides lots more information on this category or aircraft. Have a look at the  HYPERLINK "http://www.copanational.org/members/COPAGuides/COPA%20Guide%20to%20Ultralights.htm" COPA Guide to Ultralights for the complete story. Aircraft Kits & Plans There are currently over 700 different types of aircraft that can be built from kits or plans! That means that there is probably something there that will suit just about any potential airplane owner. In Canada, kit or plans built aircraft have to meet the requirements for either the amateur built or ultralight categories. Have a look at the preceding paragraphs for information on the limits of those categories. You should note that there are some kits that are aimed at the US market that are not eligible to be licensed in Canada. Because the US FAA rules for amateur builts do not limit the gross weight or the number of seats, some US kit manufacturers have kits available that are not eligible for a Special Certificate of Airworthiness – Amateur-Built in Canada. These include amateur-builts that have more than four seats or are over 5000 lbs gross take-off weight, among other limitations. The main advantage of buying a kit or plans and building your own aircraft is that you will get exactly what you want and you will know everything about how it is constructed. After all, you will have pulled all the rivets, laid up all the fibreglass or clamped all the glue-joints yourself! Building your own aircraft can also save you a lot of money – you get a lot more performance at a lower cost by providing your own labour. There are disadvantages to building your own airplane. It takes time to build an airplane – usually more than you expect. Most manufacturers publish a “number of hours to build”. Some of these numbers are quite fanciful, while others are based on actual times that it has taken real builders to complete the aircraft. Most manufacturers use the time that it takes an experienced builder, with all the proper tools working full time to complete the kit. No matter how simple the kit, most first-time builders find that they need to double or even triple the estimated time to build. Consider realistically how much time you that will be able to spend on building per week. How long will it take to complete your dream plane? Aircraft kits vary greatly in how long the manufacturer says it will take to complete them. Some simple ultralights can be built in 50-100 hours, while more complex projects can take 5000 hours or more. A builder who can work on the project fulltime could realistically put in 2000 hours in a year. If you are working at a job fulltime and building your plane on the weekends you may find that 500 hours per year is as much as you can find to build. Under those conditions that kit that the manufacturer says will take 2500 hours to build (and will actually take you 5000 hours) will take ten years to complete! Can you hang in there that long? Other factors to consider are tools and space. Do you have heated space big enough to build in? If it isn’t heated then you won’t be doing much building in the Canadian winter and that is when most airplane building happens! Do you have the tools you need or can you get them? Did you factor tools into the cost that you were expecting? Perhaps the most important factor in building an aircraft is “spouse support”. If your partner and other family members aren’t 100% supportive of your airplane building then you will probably have a serious problem in finding the time and money to keep building. All factors to consider! There are many factors to think about when assessing if you have the ability to build an aircraft. Aside from time, space, tools and spouse support there are skills, ability and training. Assessing your capabilities is a large topic. There are many good books that describe the challenges of building your own aircraft and how to deal with them. It is recommended that if you are considering building your own aircraft that you read one of those texts. One source of this information is  HYPERLINK "http://www.butterfieldpress.com/choosaut.html" Choosing Your Homebuilt – The One You’ll Finish and Fly by former COPA Director Ken Armstrong. There is no doubt that one of the most memorable moments in any pilot’s flying career is the first flight in an aircraft that they built themselves. Almost all aircraft builders say, after that first flight, that it was all worth it.  HYPERLINK "http://www.copanational.org/members/COPAGuides/COPA%20Guide%20to%20Amateur-Builts.htm" The COPA Guide to Amateur-Builts has lots more information on the considerations for building an aircraft in this category Foreign Aircraft What if the perfect aircraft for you isn’t in Canada? In many cases it is possible to import an aircraft. The first step is to ensure that it will qualify for a flight authority in Canada. Certified aircraft are usually not a problem, especially if they are certified in the USA. Make sure that aircraft is eligible for a  HYPERLINK "http://www.tc.gc.ca/aviation/applications/nico-celn/en/adv_search.asp?x_lang=e" Canadian type certificate. Other aircraft need to fit into the ultralight, amateur built or limited categories. Any aircraft that fits the Basic Ultralight definition of two seats or less, 45 mph or less stall speed, 1200 lbs or less gross weight and the  HYPERLINK "http://www.tc.gc.ca/civilaviation/general/recavi/Ultralight/ULTransitionStrategy/basic.htm" \l "Definition" minimum useful load calculation can be brought into Canada and registered as a BULA. AULA are more difficult, since this category does not exist outside Canada. If the aircraft is a listed AULA and manufacturer is willing to issue you an S of C for the aircraft then you can register it as an AULA without too much difficulty. If they aren’t, then you can’t. Importing amateur built aircraft used to be impossible in Canada. Due to COPA initiatives through CARAC, this is now possible! Foreign amateur built aircraft that meet the Canadian definition and have flown 100 hours airframe time are eligible, subject to an inspection when they enter Canada. The complete rules for importing an amateur built aircraft are located in HYPERLINK "http://www.tc.gc.ca/civilaviation/maintenance/aarpe/Recreational/Exemption-Appendix-C.doc"HYPERLINK "http://www.tc.gc.ca/aviation/applications/exemptions/docs/en/1298.htm"CAR STD 507 Appendix C and there is lots more information in  HYPERLINK "http://www.copanational.org/members/COPAGuides/COPA%20Guide%20to%20Amateur-Builts.htm" The COPA Guide to Amateur-Builts  Pressurized Turbine? So you have your heart set on a really hot airplane – something turbine powered and pressurized? There are some extra considerations there beyond the obvious requirement for a specific type rating (since it is probably “high performance”). The most important factor to consider is that all Canadian aircraft that are both pressurized and turbine, that carry passengers and are not in commercial or flight training use, are required to operate under HYPERLINK "http://www.tc.gc.ca/CivilAviation/Regserv/Affairs/cars/Part6/Subpart4.htm"CAR 604 Private Operator Passenger Transportation. This means that you will need an operating certificate and everything that goes with it. Since January 1st 2003 this program has been administered by the Canadian Business Aviation Association ( HYPERLINK "http://www.cbaa.ca/" CBAA) under their HYPERLINK "http://www.cbaa.ca/portal/POC/POC1/"Private Operator Certificate program on behalf of Transport Canada. This program requires you to write and follow a Safety Management System for the operation of the aircraft, belong to CBAA ($1500 per year membership fee for one aircraft), and meet minimum training, maintenance and insurance benchmarks, plus several other requirements. This is not to say don’t buy a turbine pressurized aircraft, just be aware that there are some extra requirements and costs involved. Please note that to fall under the requirements of CAR 604 the aircraft must be both turbine powered (jet or turboprop) and pressurized. Aircraft that are pressurized and piston powered (Cessna P-210, Piper Malibu) are not captured by this rule, nor are turbine, non-pressurized aircraft (Bell 206 Jet Ranger, Cessna 208 Caravan). This rule also does require a CAR 604 operating certificate for any large aircraft (over 12,500 lbs), regardless of the type of power or pressurization. It is also worth noting that you can modify an aircraft into requiring an operating certificate under CAR 604 by converting the engine to turbine power. For example if you own a piston powered pressurized Cessna P-210 and you convert it to Allison 250 turboprop power through an STC, then you suddenly will need an operating certificate under CAR 604 before you fly the aircraft with passengers. COPA was extensively involved in the negotiations with TC and CBAA over the last few years on this issue and sought to have turbine and pressurized aircraft flown for personal, non-corporate use exempted from the CAR 604 requirements. In turning down COPA’s request on this issue, TC stated that they felt that a greater level of control and oversight was justified on all turbine and pressurized aircraft and that the CBAA POC program was the appropriate place for that oversight and control. It is not anticipated that there will be any changes to the types of aircraft included under this POC requirement in the future. If you are planning to own any type of turbine and pressurized aircraft then plan to be part of the CBAA POC program. Which Type is Right for You? There are so many choices of categories and types of aircraft – how do you decide which one is right for you? There are many different approaches to this question. Some people just start off by buying the same type that they did their training in. There are advantages to that approach. For a low time pilot you can gain experience in owning and flying an aircraft that is familiar to you. There is less to learn about your new aircraft. Many of our most common trainers – Cessna 150s, 152s, 172s, Piper Cherokees, and Diamond DA20s all make excellent personal aircraft, especially for low time pilots. Some people do detailed analyses of their needs and options - a scientific approach. This involves defining exactly what you need in terms of the number of seats, payload, range, speed, night flying and IFR equipment and other features. Of course most people who use this approach start with what they want and then refine it down to what they really need, once they have looked at the costs. What they want is a 200 kt cruise speed, but 100 kts will probably suffice – especially when you consider the additional costs involved in doubling the cruise speed! Some people simply decide that one type is for them based on previous flying experience or even on how the plane looks. There really isn’t anything wrong with that approach. There is no data to show that this approach results in people being less happy with the airplane that they finally settle on. The real key is to find an approach that works for you and that you are comfortable with. There is one effect that you should be aware of – just because you can afford to buy it doesn’t mean that you can safely fly it! Many affluent pilots do their training on easy trainers, like the Cessna 150 like every one else. Then as soon as they have their Private Pilot Licence they buy a Bonanza, a Lancair or an RV-8. They very quickly discover that they don’t have the experience or the training to handle a hot airplane like those types. A wise pilot will move up through some intermediate steps before getting into fast and slippery aircraft. If you learned on a 150 your next step should be to fly the 172 for a while, then perhaps the 182. Diving from a 150 straight into a Cessna 210 is asking for trouble, whether you can afford to buy one or not. There is nothing humiliating about flying an aircraft that is within your capabilities, however running your hot new plane off the end of the runway into the approach lights is embarrassing! Plan to get an airplane that will allow you to “walk before you learn to run”. Who Can Own a Canadian Aircraft? This is important! Not everyone can qualify to own a Canadian registered aircraft. The requirements are set by Transport Canada in HYPERLINK "http://www.tc.gc.ca/CivilAviation/Regserv/Affairs/cars/Part2/202.htm" \l "202_15"CAR 202.15 and are basically the same as in the USA and most other ICAO countries. To own a Canadian registered aircraft, or a share of one, you must be A Canadian citizen, or A Canadian permanent resident (landed immigrant), or A Canadian Corporation Foreign citizens are not eligible to own Canadian aircraft, nor are foreign corporations. If you are thinking about buying an aircraft and keeping it foreign registered have a look at  HYPERLINK \l "Keeping" Keeping It Foreign Registered? first. Finding an Aircraft So how do you find that airplane of your dreams? That depends on what you are looking for. For all used Canadian aircraft, certified, amateur builts and ultralights the best source is COPA Flight - Canadian Plane Trade, the COPA Newspaper and the on-line version of HYPERLINK "http://www.copanational.org/members/PlaneTrade/cpta2.htm"Canadian Plane Trade. For new aircraft, including kits and plans, contact the factory directly or the dealer in your area. You can find their ads in COPA Flight as well or locate them on the  HYPERLINK "http://www.copanational.org/non-members/AircraftinCanada.htm" COPA website. Almost all aircraft and kit plane manufacturers have their own website and that is a good place to start gathering information. If you can’t find their website address in COPA Flight or other publications a quick search using a web search engine, such as  HYPERLINK "http://www.google.com/" Google or  HYPERLINK "http://www.dogpile.com/info.dogpl/" Dogpile, will usually locate the site quickly! For locating aircraft in the USA a great source is  HYPERLINK "http://www.trade-a-plane.com/index.shtml" Trade-A-Plane. That publication is available in print or on-line for the price of a subscription. Another popular US source is the free on-line listings on  HYPERLINK "http://www.barnstormers.com" barnstormers.com. Most aviation magazines offer classified ads. Magazines such as  HYPERLINK "http://www.kitplanes.com/" KitPlanes,  HYPERLINK "http://www.ulflyingmag.com/" Light Sport & Ultralight Flying and  HYPERLINK "http://www.ultraflight.com/" UltraFlight are good sources of classifieds for US ultralights and amateur builts. Another good source is your local airport bulletin board. Most airports and flying schools have a bulletin board where people pin up notices of aircraft for sale. As a bonus you may find what you are looking for in your local area by this method. Local aviation organizations can also be useful “word-of-mouth” sources of aircraft for sale. Local flying clubs, HYPERLINK "http://www.copanational.org/non-members/flights.htm"COPA Flights and other local organizations are all possibilities. Most  HYPERLINK "http://www.copanational.org/non-members/AircraftinCanada/AircraftinCanadaCertified2.htm" aircraft type clubs are a good source of classifieds for a particular aircraft type or family of aircraft types. Most popular aircraft types have a type club. There is more information about  HYPERLINK \l "TypeClubs" Aircraft Type Clubs later in this book. If you are searching for a particular or rare aircraft one possibility is to search the Transport Canada  HYPERLINK "http://www.tc.gc.ca/aviation/activepages/ccarcs/en/default_e.asp?x_lang=e" Civil Aircraft Register for the type you are interested in. The Civil Aircraft Register doesn’t include telephone numbers, but once you have the person’s name you can locate their telephone number (if it isn’t unlisted) through services such as HYPERLINK "http://findaperson.canada411.ca/"Canada 411 Find-a-Person. You can then contact the owners of those aircraft directly and see if any are for sale. Many aircraft are for sale, but aren’t being advertised at all. As a bonus, even if you don’t immediately find one for sale you can speak to present owners about their thoughts on the aircraft and its performance. It is surprising how much information you can get from this method – and most owners are very glad to spend a few minutes on the phone to talk about their aircraft! It is unusual to meet a grumpy person using this method. Contacting a Seller When you locate a prospective aircraft seller the next step is to be prepared before you make the phone call. The seller is probably motivated to sell the aircraft and may not tell you the things that you should know. It is up to you to ask. Experience has shown that some aircraft sellers are very honest and some are not. The best way to deal with not knowing the level of honesty of the person you are dealing with is, to quote Ronald Reagan, “trust, but verify”. Do not take anything at face value – check every claim made by a seller. This is very true of  HYPERLINK \l "Titlesearchandliens" liens on the aircraft. Recently two cases have shown that aircraft sellers will openly claim that there are no liens even when they know there is an outstanding lien. You have to check for yourself. Here is a good list of things to ask during that first phone call: Aircraft Registration (good for checking the  HYPERLINK "http://www.tc.gc.ca/aviation/activepages/ccarcs/en/current_e.asp" \l "quick" Civil Aircraft Register and for HYPERLINK "http://www.tc.gc.ca/aviation/applications/cawis-swimn/awd-lv-cs1401.asp?rand="ADs) Aircraft serial number Total Time Airframe (TTAF) Total time on the engine since major overhaul (SMOH) Type of fuel used - mogas, 100LL, Jet A, Jet B, other fuel Years and hours on the constant speed prop or variable pitch (if installed – overhaul is required every ten years or at engine overhaul) Years on the fixed pitch prop since it was removed and inspected (required every five years) Aircraft interior condition (usually expressed as a number  HYPERLINK \l "OutOfTen" “out of ten”) Aircraft paint condition and colours (also usually expressed as a number  HYPERLINK \l "OutOfTen" “out of ten”) Avionics installed Has it ever been used as a trainer? Any items that need maintenance attention Outstanding HYPERLINK "http://www.tc.gc.ca/aviation/applications/cawis-swimn/awd-lv-cs1401.asp?rand="Airworthiness Directives (ADs) Location of aircraft Stored inside or outside Availability of the aircraft logs and documents for inspection Availability of a suitable place for a pre-purchase inspection Availability for a demonstration flight Any  HYPERLINK \l "Titlesearchandliens" liens on the aircraft Seller’s reason for selling That last item is an interesting one. A significant number of used aircraft are sold each year in Canada because some expensive item has come up and the current owner cannot afford to get it fixed. This can be low engine cylinder compression, high oil consumption, weak or failing radios, overdue engine overhaul or a myriad of other reasons. Most owners will not tell you that there is something wrong with the aircraft; it is up to you to find that out, too. Asking why they are selling the plane may get an interesting answer. Sometimes that answer will indicate that it is a divorce sale, that the owner lost their medical, or that they are buying a more capable aircraft. If they don’t have a clear reason for selling that may be an indication that there is a mechanical problem to look for. That may be the case even if they have a good excuse for selling. In the case of kit or plans built aircraft that are sold with very few hours on them since completion there may be another reason. Lots of these aircraft come up each year – often with less than 25 hours on them. The most common reasons for selling these types are: The builder scared themselves on the early flights by building an aircraft that they didn’t have the skills or currency to fly. This is common with Lancairs, RVs, Glasairs and other high performance airplanes. Keep in mind many builders don’t fly much when they are building, so it may be a more of a pilot experience problem than a problem with the aircraft. The airplane didn’t meet their expectations. This usually means that the empty weight was too high and hence the payload was too low, the cruise speed or rate of climb too low or something similar. Check your own test flight data from flying the individual aircraft against the manufacturer’s claims to see what didn’t measure up. The builder really just likes building rather than flying and is selling the plane to buy another one to build. Some people really do this! There are even some non-pilots who like building and selling airplanes just to build another one! Out of Ten? The scale of rating aircraft interiors and paint “out of ten” is a traditional (and not very well defined) system. Obviously different people can mean different things by “7/10”. Regardless of what the seller rates the paint and interior, form your own judgement when you see the plane. Here is what people usually seem to mean for interior and exterior ratings: 10/10    Just like new 9/10    Almost new, maybe a just a little wear 8/10    Good to average condition - some small amount of wear 6/10    Fairly worn, getting close to needing repainting or refurbishing 5/10 & below Needs repainting or refurbishing - the price should reflect that! Inspecting the Aircraft In most cases you should have an airplane inspected twice. The first inspection should be by you and the second by someone who is qualified to do a detailed inspection. You, as a prospective buyer, normally need to see the aircraft to make sure that it is worth spending more money and time on checking it out more carefully. Often a good look-over by the buyer, just a regular walk around, will reveal enough problems for you to walk away. Be careful of photos – most aircraft look good if photographed from far enough away. Even appallingly poor paint can look good in photos! Photos from the seller are helpful, but they are not a substitute for actually seeing the aircraft. Spend the time to look the plane over carefully, including inside the tailcone where corrosion often lurks (bring a flashlight!). This process is much easier without the owner looking over your shoulder, but many owners will want to be there while you are looking their plane over. If the plane looks good then the next event should be a formal pre-purchase inspection. The question is who should do it? If the aircraft is a certified or O-M aircraft then it should probably be an AME who does the pre-purchase. The AME should be familiar with the type and have worked on them before. They should not be the AME who has been maintaining that airplane recently. If you get the current AME who works on that plane to inspect it they are really just inspecting their own work, so don’t expect to find much out from them. The ideal candidate is an AME whom you know personally and trust. Be prepared to pay their travel expenses to get them to the airplane or alternatively have the airplane brought to them. The pre-purchase inspection will cost a few hundred dollars in labour and will probably take at least a half a day to do. It is basically an annual inspection – without the snag rectification! What you want to ask the AME is “Tell me what is wrong with this plane and how much it will cost to fix it”. Anything they find wrong should be noted and deducted from the purchase price. The best news that you can get is that the plane is irreparable junk – that pre-purchase inspection just saved you a great amount of money and frustration! If you ask an AME to “tell you that it is a great aircraft” then most of them will tell you that it is a great aircraft. Make sure the AME knows that you want to really know the state of the aircraft and the costs involved fixing it. For certified aircraft a pre-purchase inspection must include a paperwork and document inspection and check for Airworthiness Directives. Transport Canada has a web-based free  HYPERLINK "http://www.tc.gc.ca/aviation/applications/cawis-swimn/awd-lv-cs1401.asp?rand=" AD service where you can research ADs for any certified aircraft. It is well worth checking to ensure that there are no expensive surprises. All aircraft require a document check, which should include: The Journey Logbook (ultralights do not need to have these) The Technical Record (this is no longer required to be a green binder of books – it can now be in any form, including electronic or a file folder). This is not required for ultralights, amateur-builts or O-M aircraft. The Certificate of Registration (all aircraft including ultralights require this. The only exceptions are hang gliders and paragliders) The Certificate of Airworthiness (for certified aircraft) or Special Certificate of Airworthiness (for O-M, Amateur-builts and Limited category aircraft) Note: Ultralights do not have a C of A A record of the last annual inspection (Basic ultralights do not need to have these. Advanced ultralights must have maintenance records showing that the maintenance schedule specified by the manufacturer has been adhered to) Pilot Operating Handbook (legally required for certified aircraft – some ultralights, O-M and amateur builts will have one too) Current Weight and Balance Report (Basic Ultralights may not have one) Note: Since 1999 there has been no requirement for a Radio Station Licence for aircraft operated in Canada. Most AMEs are not very conversant with ultralights or amateur builts and will often not be the best person to inspect them. In the case of these types of aircraft the best person to inspect them is probably another owner who has built one of the type that you are looking at. You can probably find no one more qualified to inspect it than that! If you don’t know anyone who is familiar with the aircraft type, then check with the  HYPERLINK \l "TypeClubs" Aircraft Type Club if there is one. You can find many type clubs listed on the HYPERLINK "http://www.copanational.org/non-members/AircraftinCanada/AircraftinCanadaCertified2.htm"COPA Website. Local  HYPERLINK "http://www.copanational.org/non-members/flights.htm" COPA Flights are a good source of finding current owners of types. Of course you can also consult the Transport Canada  HYPERLINK "http://www.tc.gc.ca/aviation/activepages/ccarcs/en/default_e.asp?x_lang=e" Civil Aircraft Register to find current owners near you or near the aircraft. Expect to pay them for their time as you would an AME. For non-certified aircraft, the documents need to be inspected, too. Amateur-built and O-M aircraft can have all their records contained in their Journey Logbooks, which makes it easy to refer to. Some owners still have separate Journey and Technical Logbooks, which is allowed, just not mandatory. AULAs must have some type of maintenance record system, which you must be able to refer to. Many AULA owners keep standard aircraft Journey Logbooks. BULAs are not required to have any records at all. Most BULA owners keep good records, however, often in a standard aircraft Journey Logbook. In the case of any BULA that has no records at all, it would be safest to assume that the plane needs a good annual inspection and an engine overhaul and should be priced accordingly. If you are an AME or have experience building that non-certified type you can do your own pre-purchase inspection. There is at least one good reason to have an independent person still do it, however. You may find that you are enthusiastic enough about the prospect of this airplane that your own feelings may cloud your ability to be objective. A second set of eyes may be a good investment. What can you do if you locate the plane that you think you want, but it is 3000 miles away? This is a challenge, but not insurmountable. You may want to have the pre-purchase inspection done first, before you travel out there to see the plane. You can locate a local AME or aircraft type-expert through recommendations (not from the seller!) or through the nearest  HYPERLINK "http://www.copanational.org/non-members/flights.htm" COPA Flight. The  HYPERLINK "http://www.copanational.org/non-members/AviationAssociations/AME%20Associations.htm" Canadian Federation of AME Associations or other provincial AME associations may be able to help you locate an AME in a specific part of the country too. Don’t ever skip the pre-purchase inspection – it can save you tens of thousands of dollars, if it saves you buying someone else’s problems. There are people who buy aircraft “sight unseen”, but you are really rolling the dice with that approach! Fly Before You Buy There is one step that you should consider mandatory, no matter what type of aircraft you are looking at – “Fly Before You Buy”. There are two reasons for flying the aircraft: To ensure that you like that aircraft type and that it meets your needs, especially for handling qualities. To ensure that that particular plane flies the way it should – that it performs near the book specs and is rigged correctly. The first type of flight can only be conducted by you as a prospective owner – as only you can tell whether you like the handling of this type of aircraft. If the aircraft is a certified aircraft and you have flown the type and model before, you may decide that you don’t need to test fly it for this reason. The second type of test flight needs to be done on all aircraft. You may not even be the best person to test fly the plane. You may not have the experience or background to tell whether the plane is performing correctly and rigged right. If that is the case consider finding a pilot who is very familiar with the type to fly the plane and evaluate it for you. In the case of non-certified aircraft it is especially important to “fly before you buy” as individual aircraft can each fly very differently from others of the same type. The wing construction and rigging can be very different from others of the same type, or even from what the designer intended. In some cases it just isn’t possible to fly the actual aircraft before you buy it. This is always the case when you are buying a wreck to rebuild or a kit. The best you can do in this case is to fly another one of the same type. It would be unfortunate to spend a lot of time rebuilding a plane to discover that you don’t like the flying qualities. Of course that is one reason why wrecks are cheaper to buy – you can’t fly them – you get them “as is”. If the aircraft is airworthy but for some reason not available to fly before you buy it, be suspicious – the seller may have something to hide, such as poor engine performance or a twisted airframe, for example. Some buyers have been known to let the annual inspection or insurance policy lapse to preclude a prospective buyer from flying the airplane. They figure that knocking off the price of the annual is a lot cheaper than fixing whatever is wrong. If you can’t fly it before you buy it than that degree of uncertainty should be reflected as a discount in the price, perhaps even as low as scrap value. You are taking a risk! How much is it worth? Trying to figure out what an aircraft is worth is a challenging subject. Aircraft values can vary substantially with international economic conditions as well as the market demand for the aircraft type and the condition of the individual aircraft. In general you can get a good idea what an aircraft is currently worth by consulting COPA’s HYPERLINK "http://www.copanational.org/members/PlaneTrade/cpta2.htm"Canadian Plane Trade classifieds, on paper or via the COPA website. Another good source of values for certified aircraft is the Aviation BlueBook. This is a CD-ROM based compilation published quarterly by  HYPERLINK "http://www.aircraftbluebook.com/" Primedia in the USA. Since an annual subscription is US $319.95 it is not usually practical for individual aircraft shoppers to purchase their own copy. Most aircraft brokers will have a copy of the BlueBook. Values from it are also available to COPA members from the  HYPERLINK "mailto:benefits@copanational.org?subject=Bluebook Value Request from COPA Guide to Buying an Aircraft" COPA office if you can provide the make, model, year and engine hours since major overhaul, plus any other detail information on interior and exterior condition and avionics. The BlueBook gives the average price over the past six months for an aircraft of the same type, model, year, engine hours with average interior, exterior and avionics. It is not the value for any specific individual aircraft. Aircraft selling prices can vary substantially depending on the individual aircraft's condition. The exact value of an individual aircraft can only be determined by a neutral third party aircraft appraiser (someone who is not involved in the sale of the aircraft) and then only after an AME's pre-purchase inspection has determined the mechanical condition of the aircraft and the cost of rectifying any unservicabilities. BlueBook values can be easily adjusted with estimates for all the items that affect the value of an aircraft including engine hours, interior, exterior and avionics. The BlueBook can’t price an individual aircraft but it will tell you what a similar aircraft has sold for in the past six months. The Aviation BlueBook only provides values for certified aircraft as individual ultralights and amateur-builts can be very different from each other and the numbers sold are too small to get reasonably accurate values for those types of aircraft. For determining the value of these categories of aircraft the best procedure is to check the classifieds and see what they are selling for or figure out what a kit, instruments, engine etc cost and deduct some percentage for depreciation. The only major exception to this guidance is  HYPERLINK "http://en.wikipedia.org/wiki/Van's_Aircraft" Vans’ Aircraft RV series. Due to market demand, RVs typically sell for more than the parts involved by Cdn$20-30,000. The engine hours “since major” can be factored into any BlueBook value, based on the cost of the overhaul divided by the recommended Time Between Overhaul (TBO). The question sometimes gets raised of how to deal with an engine that is listed as “on condition”. This is actually an old term, for private aircraft this really means that the engine is beyond the factory recommended TBO. There is no problem with doing this, but from an aircraft value point of view it means that the engine is “run-out” and needs an overhaul. Many owners will retort with, “compression is fine and it isn’t burning any oil”, but while that may be true, it isn’t relevant to the value. If the engine is “on condition” then it is valued as if it is ready for overhaul now. Buyers of an aircraft with an “on condition” engine should have the money for an overhaul standing by – you may get another hundred hours or more out of the engine or you may have to send the engine in for overhaul next week. Aircraft values in Canada have fallen dramatically since 2003 due to the plummeting US dollar, making this a good time to buy a new or used aircraft. More detailed and up to date information on this subject can be found in the article  HYPERLINK \l "CanadianDollar" Aircraft Prices in 2007 – Where Are They Going? Information on  HYPERLINK \l "Aircraftfinancing" financing,  HYPERLINK \l "Taxes" taxes and  HYPERLINK \l "Insurance" insurance is contained in separate sections below. Flying Junk Some aircraft are worth a lot less than the current owner thinks it is worth. In recent years aircraft values have fallen dramatically due to the rising Canadian dollar. In 2006 most aircraft are worth 35% less than they were in 2003. Some owners haven’t realized that and are asking unrealistically high amounts for the plane they are selling. This has recently produced an interesting market effect. In 2005 about half the used aircraft advertised in Canada were over-priced and the other half were priced close to their actual value. Since then most of the “right-priced” aircraft have sold. Guess what that leaves in the market in 2007? Now you know why many Canadian buyers are looking  HYPERLINK \l "somedeatailsforiegnaircraft" south of the border for planes. Beware of aircraft that need a lot of work – they can be worth very little, despite what the owner might say about it. Here is an example of just that: The fall 2006 BlueBook value of a 1967 Cessna 150 (average paint, interior and avionics and 900 hours SMOH) in Canadian dollars is $19,147 The owner is asking $30,000, of course! Except this aircraft really needs repainting. The cost of repainting is $10,000; since an “average value” is based on average paint (half way from “new paint” to “time to repaint”) you deduct half the cost of a paint job from the value of the aircraft. New value $14,147. Except this aircraft really needs a new interior – the seats are torn, side panels broken and the headliner is shot. Cost of a new interior is $4000, so you deduct half of the cost for the value of the aircraft. New value $12,147. Except that this aircraft’s engine is over 1800 hrs SMOH (the recommended TBO), is “on-condition” and is therefore due for an engine overhaul. Deduct half the $21,090 cost of an engine overhaul. Now the aircraft value is $1602. Except that this aircraft has no radio or transponder in it; those were sold separately, leaving a hole in the panel. Those items would be part of “an average condition C-150”. Because they are missing you have to subtract the whole cost of installing those. A nav-comm and transponder will cost about $7500 including installation. The new value of the aircraft is now below $0 and is only worth “salvage value” and that is what you should offer for the aircraft. Undoubtedly the owner still thinks it is worth $30,000, but it isn’t. Don’t pay too much for “Flying Junk” because the amount of money needed to bring it up to “average” condition will mean that you will never get your money back out of it when you sell it. If you paid the $30,000 this owner thinks it is worth and then installed new radios, repainted the plane and overhauled the engine then you would have spent about $70,000 on a plane that would be worth about $35,000 today in that totally refurbished condition on the resale market. If the owner insists it is worth far more than it really is, be prepared to walk away and look for another aircraft. How much will it cost to own? This is important because you don’t want to buy an aircraft and then discover that you can’t afford to fly it! A common mistake that new airplane buyers make is that they spend all their money on buying the aircraft. Then they discover they have no money for insurance, taxes, fuel, oil, repairs, etc. As a rule of thumb you should spend no more than half of what you have available for flying on the plane itself. If you have $50,000 don’t buy a $50,000 Cessna 172, buy a $25,000 Cessna 150 instead. Ownership costs can be divided into “fixed” costs and “variable” costs. The fixed costs are those that you have regardless of the number of hours you fly. These include: Financing (if applicable) Insurance Hangarage or tie down space Maintenance Depreciation (if applicable – only newer aircraft depreciate – older ones actually appreciate! See the article  HYPERLINK \l "AFAppreciatingDepreciation" Appreciating Depreciation) Nav Canada ANS fee ($71 per year starting in March 2007, if applicable – ultralights, gliders and balloons are exempt, as are all aircraft under 1328 lbs gross weight) It is worth noting that there are no more Aircraft Radio Station Licence fees in Canada. COPA action had these fees eliminated in 1999. The variable costs are those that you incur when you fly and are generally “per hour”. These generally include: Fuel Oil Engine overhaul allowance Landing fees (if applicable)  HYPERLINK "http://www.copanational.org/members/COPAGuides/COPAGuidetoEstimating.htm" The COPA Guide to Estimating Aircraft Costs is available on the COPA website, complete with instructions on how to use it. You will need MS Excel to make it work. It will enable you to fill in the blanks and the program will calculate for you how different decisions will affect your costs per year and per hour. The program even graphs those two outputs! During the first year or two of ownership many new owners find that they have to spend more money than anticipated on upgrading equipment (usually avionics), replacing old equipment, buying covers and generally getting the aircraft to a state where they are comfortable and happy with it. Ensure that you make a good estimate of all the broken equipment and items that will need adding or replacing. Make sure that you account for this when you estimate the first year’s maintenance costs. Even so you will probably under-estimate the costs for these items as many unanticipated things will come up. Aircraft Partnerships These days many aircraft owners decide to get into partnerships. Sharing an aircraft makes good sense – most aircraft don’t fly very often, so scheduling conflicts rarely arise. Having a partner or two or three allows you to reduce your purchase price per person along with your fixed costs. Generally each person flying pays the variable costs for the time that they fly. A complete look at partnerships is included in the  HYPERLINK \l "AFPartnerships" Affordable Flying articles at the end of this guide. Two different sample partnership agreements are also included in the guide.  HYPERLINK \l "PartnershipAgreement" Partnership Agreement Sample #1 is one that COPA members have used for many years with good success.  HYPERLINK \l "PartnershipAgreement2" Partnership Agreement Sample #2 is a newer style agreement that some members may find more to their tastes. Feel free to adopt the best of both for your own use! Making an Offer to Purchase Once you are happy with the aircraft that you have located, the results of the pre-purchase inspection and the asking price, you may be ready to make an offer to purchase the aircraft. Some aircraft owners will want you to make an offer to purchase before you have a pre-purchase inspection done. They just don’t want an unfamiliar person taking the plane apart without at least an expression of interest in writing. If that is the case then you will want to make the offer conditional upon the success of the inspection. You can make the offer conditional on some or all of the following factors, depending on your circumstances: The successful conduct of a  HYPERLINK \l "Titlesearchandliens" title and lien search. The arrangement of  HYPERLINK \l "Aircraftfinancing" financing of the aircraft (if required). The successful completion of a  HYPERLINK \l "Inspectingtheaircraft" prepurchase inspection. That the aircraft is being sold as presented and that no equipment will be removed (you will want to specifically list loose equipment items that will be included, such as headsets, handheld GPS sets, aircraft covers, tow bar, tie down kit, chocks, etc) The purchase includes delivery of the aircraft to you (if applicable). That the deal will be closed when all of the above items are complied with. You can use a form similar to the  HYPERLINK \l "OfferToPurchase" Offer to Purchase Form included in this publication for making a written offer. Giving the Seller a Deposit Once you have found the aircraft and make an offer there is generally a period of waiting caused by the buyer – to organize financing, conduct a title search and other administrative functions. The seller will generally not hold the aircraft for you (and not sell it to someone else) unless you give them a deposit. The deposit is money given to the seller to show you are serious about the purchase and hold the aircraft for you. It will typically range from $500 to 10% of the purchase price. Always get a receipt for the deposit. The deposit is applied to the purchase price when you complete the sale. If, for some reason, the purchase falls through, the seller will normally refund your deposit. In some cases the seller may feel that they are entitled to keep the deposit so don’t give a larger deposit than you are willing to lose. Going to court to get your deposit back will generally cost you more than the value of the deposit. If you are uncomfortable with this arrangement you can have third party trusted by both parties hold the deposit. In Canada this would normally be a lawyer. More information can be found on this subject in the section on  HYPERLINK \l "Escrow" escrow. Title Search and Liens The aim of doing a title and lien search is to make sure that the person selling the aircraft actually owns it! There have been cases where someone has tried to sell a stolen aircraft, but the more usual case is that the person selling doesn’t have a clear title and there is a lien against the aircraft. This is most likely because the aircraft owner has a loan outstanding and used the aircraft as collateral for the loan or an AME has placed a “mechanics’ lien” against the plane for work done but not paid for. In any case, if you buy a plane that has a lien against it the plane can be seized to pay the debt. If you buy a plane with a lien against it, the lien is yours to pay, too. Under Canadian law you will be left with no plane and no means of getting your money back except suing the original seller. It is better to ensure that the plane is “free and clear” to be sold beforehand! For some reason the presence of liens seems to be something that aircraft sellers are most dishonest about. Recent cases have shown that some sellers will claim that there are no liens on an aircraft even when they know that there are outstanding liens. It is well worth checking for yourself, regardless of what the seller says. “Trust but verify” is a good maxim here. If a seller is dishonest about liens they may well be dishonest about other aspects of the aircraft as well. Lien checks are only usually necessary when buying a used aircraft. They are not normally required when buying a new aircraft or a new aircraft kit from the manufacturer. If you buy a kit from a potential builder, who bought it from the factory and never built it, you may want to handle it as if it were a used aircraft, just to be safe. The kit may have been used as collateral for a loan for the purchase of the kit itself! The USA has a wonderful system for registering liens against aircraft. The FAA registers all liens and titles at FAA HQ in Oklahoma City. If it isn’t registered there then it isn’t a legal lien. You will have to hire a title search service to do a title search and lien check for you for US aircraft. There are several companies that provide this service, including the  HYPERLINK "http://www.aopa.org/info/certified/tne/" AOPA Title and Escrow Services Inc. A typical charge for a simple search and written report is about US$60. If you are buying an aircraft in the USA, this task will be a simple one! Here in Canada, pilots wish that we had something as simple as the US system of title and liens searches. In Canada aircraft titles are considered part of “personal property” and as such fall under provincial responsibilities. That means that if you want to do a complete search in Canada you need to check all 13 provinces and territories. There are some title search companies, but most operate in only one province or region of the country. You can find them on the province government websites listed below, where applicable. Because of the requirements to check each province or territory separately most buyers don’t check them all. Most buyers just check the provinces where the aircraft has been based in recent years. You do take your chances with this method – but the choice is yours how many provinces to check. The actual procedure in Canada isn’t too complex, but it can be a bit time consuming. Each province has its own system – you can start with a visit to the provincial government website or a phone call and the respective provincial department can guide you from there. Alberta – This province privatized their title searches in 1996. You may search through any one of a number of private agencies listed at  HYPERLINK "http://governmentservices.gov.ab.ca/ra/ran.cfm" http://governmentservices.gov.ab.ca/ra/ran.cfm . More general information on lien searches in Alberta can be found at  HYPERLINK "http://governmentservices.gov.ab.ca/index.cfm?fuseaction=section:personalproperty" http://governmentservices.gov.ab.ca/index.cfm?fuseaction=section:personalproperty British Columbia - This province uses an Internet based system found at  HYPERLINK http://www.fin.gov.bc.ca/registries/pprpg/default.htm http://www.fin.gov.bc.ca/registries/pprpg/default.htm Manitoba - This province uses an Internet based system found at  HYPERLINK http://www.gov.mb.ca/tpr/ppr.html http://www.gov.mb.ca/tpr/ppr.html New Brunswick - This province uses an Internet based system found at  HYPERLINK http://www.acol.ca/Services/PPR/NB/menu.html http://www.acol.ca/Services/PPR/NB/menu.html Newfoundland & Labrador - This province uses an Internet based system found at  HYPERLINK http://www.acol.ca/Services/PPR/NF/menu.html http://www.acol.ca/Services/PPR/NF/menu.html Nova Scotia – This province uses an Internet based system found at  HYPERLINK http://www.acol.ca/Services/PPR/NS/menu.html http://www.acol.ca/Services/PPR/NS/menu.html Northwest Territories - This territory uses an Internet based system found at  HYPERLINK http://www.acol.ca/Services/PPR/NT/menu.html http://www.acol.ca/Services/PPR/NT/menu.html Nunavut Territory – This territory uses an Internet based system found at  HYPERLINK http://www.acol.ca/Services/PPR/NU/menu.html http://www.acol.ca/Services/PPR/NU/menu.html Ontario –This province uses an Internet based system found at  HYPERLINK http://www.cbs.gov.on.ca/mcbs/english/57PNPL.htm http://www.cbs.gov.on.ca/mcbs/english/57PNPL.htm. Lien Searches may also be done over the telephone by calling (416) 325-8847 or toll-free in Ontario at 1-800-267-8847. Please have your credit card number ready. PEI – This province uses an Internet based system found at  HYPERLINK http://www.acol.ca/Services/PPR/PE/menu.html http://www.acol.ca/Services/PPR/PE/menu.html Quebec – Contact 800-465-4949. This province also has an Internet based service in French only at  HYPERLINK http://si2.rdprm.gouv.qc.ca/rdprmweb/index.asp http://si2.rdprm.gouv.qc.ca/rdprmweb/index.asp Note you will need the owner’s name and date-of-birth to conduct a search in Quebec. Fee is $8.00. Saskatchewan – This province uses an Internet based system found at  HYPERLINK "http://www.isc-online.ca/Default.aspx?DN=19,10,1,Documents" http://www.isc-online.ca/Default.aspx?DN=19,10,1,Documents Yukon Territory – For information call (867) 667-5225. You will need a form that can be found at  HYPERLINK http://www.gov.yk.ca/forms/2000/yg2193_e.pdf http://www.gov.yk.ca/forms/2000/yg2193_e.pdf and fax it to 867-393-6251 (Attention: Val Lewis) along with a fee of $7.50 for a non-certified copy or $15.00 for a certified copy. Some Details about Foreign Aircraft In general all the usual items apply when buying an aircraft from a foreign country – you still need a pre-purchase inspection and a lien search, etc. There are some special items to keep in mind when buying an aircraft from outside Canada, particularly from the USA. One of the things that will happen when you import any aircraft (except ultralights) into Canada is that it will be subject to an inspection. For certified aircraft, aside from the usual airworthiness items, the inspector will be looking for STC and FAA Form 337 modifications. US Supplementary Type Certified modifications (STC) are generally acceptable in Canada. The other way that US certified aircraft can be modified is with a field approval (Form 337). These are not acceptable in Canada and the modification must be removed from the aircraft or put through the Canadian LSTC (Limited STC) process. The LSTC process is time consuming and expensive and will involve engineering documentation requirements and test flying by Transport Canada. It is best to make sure that your soon-to-be-ex-US aircraft has no 337 mods that cannot be easily removed. If you are unsure, contact your regional  HYPERLINK "http://www.tc.gc.ca/CivilAviation/regions.htm" Transport Canada Airworthiness Certification office. One of the most common items that have been installed on US aircraft under a Form 337 recently are some IFR certified panel-mounted GPS sets. These individual installations may or may not be acceptable in Canada. When the aircraft gets to Canada the installation will have to be inspected and will need an LSTC signed off for it, including a test flight. Many of these aircraft with Form 337 GPS sets that have been imported have been found to be improperly installed and wired and require removal and reinstallation. Some owners spend a lot of time and trouble to get a Certificate of Airworthiness for Export from the foreign Civil Aviation Authority prior to exporting an aircraft to Canada. Recent information from TC indicates that getting this document is a waste of time and money these days. Long ago you could not import a certified aircraft from another country into Canada without this document. Back then the Certificate of Airworthiness for Export proved that the aircraft conformed to its “type definition” and could have saved having a new inspection in Canada to confirm that. All that has changed. Because foreign aircraft may have field mods, “owner-made parts” and other non-internationally-accepted changes, the Certificate of Airworthiness for Export doesn’t tell TC anything about its acceptability in Canada. As a result the aircraft will still need a complete conformity inspection anyway before it receives its Canadian C of A, so the Certificate of Airworthiness for Export doesn’t save any time or money. Aircraft can be imported into Canada with or without it. It should be noted that in the case of certified aircraft exported from the USA, the FAA requires a Certificate of Airworthiness for Export to be obtained. This is unfortunate, as document then doesn’t do you any good on import into Canada, as it isn’t accepted here and just costs time and money to obtain. To register the aircraft in Canada you will need to get a  HYPERLINK \l "AircraftBillOfSale" Bill of Sale for the aircraft (just like in Canada). You will also need to have the aircraft removed from the foreign register. This is because ICAO rules state that an aircraft cannot be registered in more than one country at a time. You have to provide proof that it isn’t registered in the exporting country before it can be registered in Canada. When dealing with the FAA you can provide them with a copy of the Bill of Sale and they will de-register the aircraft. They will send you a letter and you will need that, along with another copy of the Bill of Sale, to register the aircraft in Canada. Complete details are on the  HYPERLINK "http://www.faa.gov/licenses_certificates/aircraft_certification/aircraft_registry/export_aircraft/" FAA website. The US owner can alternatively have the aircraft de-registered before it leaves their custody, but make sure that the aircraft doesn’t fly unregistered! On the subject of ferrying the aircraft home - the person who flies the aircraft will have to have an appropriate pilot licence. That means that if the aircraft is US registered you will need an FAA Pilot Certificate to fly it in US airspace. Canadians can get one of these by presenting their Private Pilot or higher licence, (Recreational Pilot Permits don’t work), medical certificate and logbook to any FAA HYPERLINK "http://www.faa.gov/avr/afs/fsdo/index.cfm"Flight Standards District Office (FSDO). You will have to fill out a Pilot Certificate application form and a security background check form. The security check will delay the issue of the FAA certificate by some 30-60 days, so plan ahead for the ferry trip! There is currently no charge by the FAA for this issuance. When bringing the aircraft across the border you will be required to declare the aircraft to Canada Customs and pay GST and PST or HST (if applicable). There are no customs charges or duty on aircraft or aircraft parts. See the  HYPERLINK \l "Taxes" Taxes section in this guide for more information. Once the US registered aircraft arrives at its final destination in Canada it is grounded until it has its Canadian C of A and C of R, along with its registration letters actually affixed to it. If the paperwork runs smoothly the aircraft should be only grounded a week or two. Foreign amateur builts can be imported into Canada provided that they meet the requirements of HYPERLINK "http://www.tc.gc.ca/aviation/applications/exemptions/docs/en/1298.htm"CAR STD 507 Appendix C and have flown 100 hours prior to export. The aircraft will still require an inspection when it arrives in Canada, and is not eligible for a Certificate of Airworthiness for Export. More details are available in the  HYPERLINK "http://www.copanational.org/members/COPAGuides/COPA%20Guide%20to%20Amateur-Builts.htm" COPA Guide to Amateur-Builts Foreign ultralights and homebuilts can be imported easily and registered as Canadian Basic Ultralights, provided that they meet the definition of an ultralight in Canada – one or two seats, 45 mph maximum stall speed and 1200 lbs maximum gross weight plus a minimum useful load requirement. The complete details are in the Transport Canada HYPERLINK "http://www.tc.gc.ca/civilaviation/general/recavi/Ultralight/ULTransitionStrategy/menu.htm"Ultralight Transition Strategy. Foreign aircraft can only be imported and registered as Advanced Ultralights if the type has a filed Declaration of Compliance, is on the  HYPERLINK "http://www.tc.gc.ca/civilaviation/general/CCARCS/advancedullist.htm" Listing of Models Eligible to be Registered as Advanced Ultra-Light Aeroplanes (AULA) and manufacturer is willing to issue a Statement of Conformity for the individual aircraft to allow it to be registered in this category. Some manufacturers will issue an S of C for a used aircraft and others won’t – so check beforehand with the actual manufacturer. Importing aircraft for the Owner Maintenance category involves the same process as aircraft in the certified category. They become O-M aircraft at the time of registration in Canada or at a later point if desired. For more information on this category see  HYPERLINK "http://www.copanational.org/members/COPAGuides/COPA%20Guide%20to%20the%20Owner-Maintenance%20Aircraft%20Category.htm" The COPA Guide to the Owner Maintenance Category. Ex-Military aircraft and other aircraft to be registered under the Special Certificate of Airworthiness – Limited program follow a similar path for import as certified aircraft do. See  HYPERLINK "http://www.tc.gc.ca/aviation/applications/exemptions/docs/en/1427.htm" CAR STD 507 Appendix F for more details on this category as well as the HYPERLINK "http://www.copanational.org/members/COPAGuides/COPA%20Guide%20to%20The%20Limited%20Class.htm"COPA Guide to the Limited Class. Keeping It Foreign Registered? Quite a number of people who buy airplanes in foreign countries, usually the USA, have thoughts of just leaving it foreign registered. They see this as a way to get cheaper insurance, avoid paying taxes or even to avoid the importation inspection and paperwork costs. Transport Canada, Canada Revenue Agency and most of the foreign regulatory bodies, like the FAA, have made sure that it isn’t that easy, possible, cheap or legal in most cases. The first barrier to keeping your new aircraft in its foreign registry is that most foreign governments don’t allow non-citizens or non-permanent residents to own aircraft registered in their country. The USA, for instance, requires owners to be US citizens or permanent residents or US corporations (with a majority US ownership or board of directors – no dummy companies allowed!). The FAA does allow foreign owned corporations to own US registered aircraft, but the company has to provide: A certified copy of its certificate of incorporation A certification that it is lawfully qualified to do business in one or more States A certification that the aircraft will be based and primarily used in the United States and The location in the USA where the records will be maintained and can be inspected. Note: An aircraft is “based and primarily used in the United States” if the flight hours accumulated within the United States amount to at least 60 percent of the total flight hours of the aircraft during each 6-calendar month period. See  HYPERLINK "http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=79bcc91fe0f6c5d2e1638910e0fda756&rgn=div8&view=text&node=14:1.0.1.3.22.1.363.7&idno=14" FAR 47.9 for more information. The second barrier is Transport Canada. HYPERLINK "http://www.tc.gc.ca/CivilAviation/Regserv/Affairs/cars/Part2/202.htm" \l "202_42"CARs 202.42 and HYPERLINK "http://www.tc.gc.ca/CivilAviation/Regserv/Affairs/cars/Part2/202.htm" \l "202_43"202.43 regulate the period of time that a foreign aircraft can be operated in Canada. This is limited to 90 days in any 12-month period unless the owner is not a Canadian citizen and is a permanent resident of the state of registry or a foreign company. If it is a foreign company then the aircraft has to either be operating under a commercial operating certificate or in a situation where it wouldn’t need a private operator certificate if were a Canadian aircraft. That means that even foreign citizens who are living in Canada as permanent residents must import the aircraft and have it Canadian registered. A third barrier is insurance. Most US insurance companies won’t insure US-registered aircraft that aren’t physically based in the USA and don’t meet the requirements of  HYPERLINK "http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr;sid=641efab60adbfca88e3122ce4d6b816f;rgn=div5;view=text;node=14%3A1.0.1.3.22;idno=14;cc=ecfr" FAR 47. Canadian insurance companies generally will not insure foreign registered aircraft. There may be no insurance available. A fourth barrier is taxes. A Canadian citizen or resident crossing the border in a US registered aircraft will be required to pay the GST and possibly the PST (or HST) at the border. To avoid paying the taxes you may have to prove that you don’t own the aircraft, or even that you don’t own it indirectly, through a US company or trust. The Canada Border Services Agency is pretty sharp when it comes to catching Canadians flying foreign aircraft across the border. Every year a few Canadians get caught with US registered aircraft, which they own in Canada. In most cases the foreign registry is invalid because the person cannot legally own the foreign registered aircraft, they have no valid insurance (which is required by  HYPERLINK "http://www.tc.gc.ca/CivilAviation/Regserv/Affairs/cars/PART6/606.htm" \l "606_02" CAR 606.02) and they have also violated the ownership and time-in-country requirements of HYPERLINK "http://www.tc.gc.ca/CivilAviation/Regserv/Affairs/cars/Part2/202.htm" \l "202_42"CAR 202.42 as well. These aircraft are very easy to spot by their foreign markings and get noticed by Transport Canada. The maximum fine for violating either CAR 202.42 or CAR 606.02 is $5000 for individuals and $25,000 for companies. It is much easier to import the aircraft and register it in Canada than have your aircraft seized or face the fines. Taking Delivery So the sale is complete – all that remains is to go get the aircraft and pay the seller. There are several ways to do this. The traditional method is for the buyer to travel to where the airplane is, hand a certified cheque or bank draft to the seller who hands over the keys at the same time. Then you get to fly your new aircraft home. This still works well, but may be impractical in some circumstances. It may be better for the seller to deliver the aircraft to you. This is fine, but do pay reasonable travel expenses – both ways! Many people have been taken advantage of, or suffered losses when buying aircraft kits. What often happens is you decide on a kit and phone to order it. The manufacturer requires a deposit to make up the kit and box it. They will want the balance due before shipment. It is perfect if you can drive down with a van or trailer and get the kit from the factory, but in most cases you have to have the kit shipped. You send the money and the kit never appears, or it shows up 50% complete, with the balance on back order. Then the company goes bankrupt, the owner dies or disappears or something similar. You are left with no money, a partial kit and now must either give up or make the parts for the rest of the kit, if possible. A possibility to solve this situation beforehand is to have the money held in escrow by a mutually trusted third party, usually a lawyer. There is more information on this in the next section. Escrow Using an escrow service can be useful in circumstances where you are buying a complete aircraft and can’t trade the cheque for the keys directly. It is also very useful when you are buying a wreck or an aircraft kit and the seller wants the money before the remains or kit is shipped. In Canada most lawyers will provide an escrow service and this should be acceptable to both parties. The way it works is simple. Once you have agreed to a price, you pay the money to the lawyer and they hold it in trust. They will inform the buyer in writing that the amount is there and it will be released once the goods are received. The aircraft or kit is then sent and received, you confirm this to the lawyer and they pay the seller. If the purchase is in the USA there are escrow services that specialize in this type of work, or you can use a Canadian lawyer. Naturally there is a fee for this service, but in cases where there is a lot of money involved it may well protect both parties. The buyer normally pays for the escrow service. If an airplane seller or kit manufacturer will not agree to a sale where the money is held in escrow then you should give careful thought as to why that would be. It is a big danger sign that things may not be what they seem in the transaction! Completing the Sale The sale is completed when the seller has the money and a copy of the Bill of Sale and the new owner has the aircraft, the paperwork and a copy of the Bill Of Sale. If the aircraft is a registered Canadian aircraft, the seller must mail in the card on the C of R within seven days. This cancels the registration. The new owner then has to register the aircraft. To do this, submit a copy of the Bill of Sale, the completed application form on the back of the C of R and the fee of $110 to your  HYPERLINK "http://www.tc.gc.ca/CivilAviation/regions.htm" Transport Canada Regional General Aviation office. A new C of R will be issued and in the meantime the existing “pink copy” is good to fly the aircraft for up to 90 days. If you don’t submit the application to register the aircraft in time to get the new C of R before the temporary “pink copy” expires then the aircraft is grounded until the new C of R arrives. It is worth noting that the new owner isn’t required to register the aircraft within any particular period of time, but it can’t be flown beyond the validity of the “pink copy” of 90 days. You may want to wait if you are commencing a re-build or other major work on the newly purchased aircraft and aren’t sure when it will be completed. It is worth noting that a US law  HYPERLINK "http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=b3147f5f89a210d09cd78cfb417a1777&rgn=div8&view=text&node=19:1.0.1.1.21.3.157.7&idno=19" Title 19 Customs Duties, Chapter 1, Part 122, Subpart C Section 122.27 will not allow aircraft to be enter US airspace on a “pink” temporary C of R – so count on flying the plane home through Canada. US Customs do regularly check entering aircraft for the C of R for this reason. It is also important to note that Transport Canada will not register the aircraft unless the person who sold it is the person to whom it was last registered, unless you can provide previous Bills of Sale back to the last TC-registered owner. These have to be proper “Bills of Sale” including the buyer and seller’s names and a description of the aircraft and not just simple receipts. This requirement does protect against registering stolen aircraft, but it can be a problem in some circumstances. There have been cases where the new owner has had to go and try to find previous owners to get a Bill of Sale for a “years-ago sale” because the most-recent owner never registered the aircraft, only to find that the previous owner is dead. That makes the process slower than it could be! Save yourself the trouble and ensure that the person who is selling the aircraft is the current registered owner on the Transport Canada  HYPERLINK "http://www.tc.gc.ca/aviation/activepages/ccarcs/en/default_e.asp?x_lang=e" Civil Aircraft Register or can produce all the Bills of Sale back to the last registered owner. Make sure you get copies of them! Used AULAs must have a  HYPERLINK "http://www.tc.gc.ca/civilaviation/general/recavi/Ultralight/ULTransitionStrategy/appendixC.htm" Fit for Flight Form (FFFF) completed by the previous owner or else they cannot be re-registered in the name of the new owner as an AULA. See the  HYPERLINK "http://www.tc.gc.ca/civilaviation/general/recavi/Ultralight/ULTransitionStrategy/advanced.htm" \l "Transfer" Ultra-light Transition Strategy for more details on this requirement. Taxes Taxes are not everyone’s favourite subject, but they are unavoidable. Here are some points to keep in mind: New aircraft and new aircraft kits are subject to GST and PST (where applicable) or HST (in Nova Scotia, New Brunswick and Newfoundland and Labrador) at point of purchase within Canada. PST and GST or HST are payable at the border for new or used imported aircraft and kits. Kits shipped within Canada, but out-of-province will not be charged PST when shipped, but the owner will be usually be sent a bill for PST (except in Alberta) or HST when the aircraft is completed and registered. When you import a complete aircraft or a kit, Canada Customs will collect the GST/HST and the PST at the border – so be prepared to pay it then. Ensure you get a receipt for the taxes paid because when you register the plane in Canada the province will probably send you that letter demanding you pay the PST or HST. A copy of your Canada Customs receipt will prove that you have already paid the taxes. Used aircraft, purchased within Canada, are subject to GST only if you buy the aircraft from a GST registrant. This means from an aircraft broker or from a company that is a GST registrant. Private sales from one individual to another are not subject to GST. Private sales within Canada are usually subject to PST, except in Alberta, of course, which has no PST. Most other provinces charge tax each time a used aircraft is sold! They are permitted under law to do this, although it means that an old aircraft may have had a lot of PST paid on it over the years. Nova Scotia, New Brunswick and Newfoundland and Labrador all collect HST on all aircraft registered to owners in their provinces. That is a 15% hit that owners in other parts of the country don’t have to face, but it is difficult to avoid. If the aircraft is registered to a company that is flying the aircraft for business use it may be possible to claim the HST back, but check with a tax specialist for more information on that before you finalize the deal. Do note that if you import an aircraft, new, used or in kit form and do not declare it at the border when you are asked if you have “anything to declare” that is called “smuggling”. If you are lucky, when they catch you, you will just have to pay the taxes on it and a fine of 25% of the aircraft’s value. If they feel that you acted maliciously then you could be in for some extensive time in jail and/or have the aircraft seized. Be smart when you import an aircraft – when Canada Customs asks if you have anything to declare, tell them “yes, this aircraft” and then pay the taxes on it. Smuggling aircraft is not a good way to save money. Usually when you register the aircraft the provincial government searches the Transport Canada Civil Aircraft Register and sees that you have bought a plane. Next they mail you a letter asking you to send in the PST that you owe. They don’t know what you paid for the aircraft unless they request a copy of the Bill of Sale from Transport Canada, a procedure that is not normally done. If you send them the correct amount of money they will normally be happy. If you claim that the aircraft cost “one dollar” expect to be the subject of a complete tax investigation. If you do not provide the province with a reasonable figure for what you paid, most provinces will send you a bill for what they estimate the aircraft is worth. History has shown that they often grossly overestimate the value of aircraft. Therefore it is better if you provide them with an accurate figure to start with. Trying to cheat on taxes is illegal and can land you in jail if you are particularly imprudent! If the aircraft was a gift or had the PST previously paid by the present owner at the border, you will have to prove that fact to the province to have them drop the claim for PST. Some COPA members have questioned whether a province can charge taxes on an aircraft since aeronautics come under federal jurisdiction in Canada. While “regulating aeronautics” is indeed under federal jurisdiction, the charging of taxes on aircraft by provinces is legal as does not interfere with the federal prerogative to regulate aeronautics. Capital Gains Tax affects aircraft sellers, but it is also worth planning for when you buy a used airplane, too. The Capital Gains Tax was changed in Canada in October 2000 and has implications for COPA Members selling an aircraft that have increased in value. The Capital Gains Tax formerly carried a lifetime exemption of $100,000. Today it has been changed so that you pay income tax on 50% of the amount of the gain. Consider the example of the person who bought a brand new 1976 Cessna 182 in 1976. That aircraft would have cost about Cdn$42,000 then. In 2006 that same aircraft, now 28 years old, was worth about Cdn$103,000. When sold, the Capital Gain would be $61,000. If you had sold it under the previous tax rules the Capital Gains Tax would have been nil. Under the new rules you have to pay income tax on half the gain, which would be $30,500. You can deduct any capital improvements made to the aircraft that increased its value while you had it. For instance a new suite of radios and an engine overhaul might increase an aircraft’s value by $45,000. If you then sold it for $45,000 more than you paid for it there would be no capital gain. It is important to note that only capital improvements that increase that value of the aircraft count – routine maintenance items, such as annual inspections, cannot be added to the value as capital improvements. Anyone considering selling an airplane that is now worth more than they paid should check the  HYPERLINK "http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/reporting-income/lines101-170/127/gains/menu-e.html" Canada Revenue Agency website Capital Gains section or talk to a tax expert to ensure that they get all the facts and don’t get hit with unexpected Capital Gains Taxes. Here is a quick summary of tax issues when buying an aircraft: Buying an aircraft from:PSTGST HST (NS, NL and NB only)a private individualYesNoYesa GST registered businessYesYesYesa foreign countryYesYesYes Aircraft Type Training When do you need aircraft type training? That is easy – you almost always need some aircraft type training! Your insurance company may even require you to have certain training or “time on type” before they will insure your new plane at all. If the aircraft you are buying is “high performance” you will need an individual aircraft high performance type rating. High performance means an airplane “that is specified in the minimum flight crew document as requiring only one pilot and that has a maximum speed (Vne) of 250 KIAS or greater or a stall speed (Vso) of 80 KIAS or greater, or an amateur-built airplane that has a wing loading greater than 13.3 lbs per square foot without flaps or 20.4 lbs per square foot with flaps”. The ratings required are type-specific and not a blanket “all high-performance aircraft” ratings. The requirements are very simple and can be found in  HYPERLINK "http://www.tc.gc.ca/CivilAviation/Regserv/Affairs/cars/Part4/Standards/421.htm" \l "421_40" CAR 421.40. Aside from those high performance aircraft, it is prudent to get a checkout unless it is an aircraft type that you are current on. For all other types, find an appropriate pilot to check you out to the point where you feel comfortable flying the aircraft. Spend some time studying the Pilot’s Operating Handbook before your checkout so you will make the best use of your airtime. In many cases the seller will include some flying time with the sale to get you on your way safely. Be especially careful with non-certified aircraft, particularly ultralights and amateur builts. These aircraft may not be designed to fly with “certified-aircraft-like” handling characteristics, as neither category imposes handling standards. Some designs are very benign and docile and fly like certified aircraft. Others can be very light, responsive, unstable in all axes, have unconventional controls, or even have specific unusual flying characteristics that will “bite” the unwary pilot. That doesn’t mean that these are dangerous aircraft to own, just that you need type training from someone who knows that type and how to fly it. A word to pilots trained on certified aircraft who are considering buying an ultralight – you very definitely need type training! This is an area that causes many accidents each year. Just because the aircraft is smaller and lighter than the one you trained on doesn’t mean that you can hop in it and go. Many ultralights have unusual flight or handling characteristics. Some are two-axis control or weight-shift control. Many ultralights are “high-drag” airplanes, which means that they have to be landed right the first time. Flare high and you will come to a quick stop at six feet off the runway. Save yourself some landing gear repairs – get a checkout, no matter how much certified aircraft time you have! Insurance Insurance can be an important consideration when buying an aircraft. If you are not in a partnership or getting a loan to pay for the plane, you may have a choice how much you insure the plane beyond the mandatory third party liability insurance. If you have a partner or a loan then you may need to have full hull insurance. It is worth a call to your insurance broker to make sure that you will be able to get the insurance you need, at an affordable price. Of course one source of insurance you should consider is COPA’s HYPERLINK "http://www.copanational.org/non-members/insur.htm"own Insurance Program, administered by Marsh Insurance. The Silver Wings plan provides a COPA Group program for third party liability insurance, passenger insurance and not-in-motion hull insurance. The Gold Wings plan provides full insurance, including in-flight hull insurance. When you are just starting out building a kit aircraft you should check to see that the insurance you want will be available when you are finished building. One problem here is that insurance availability can change in time. It is possible that when you buy your kit that your broker confirms that getting insurance will be no problem. Then, one, two, five or ten years later when the aircraft is ready to fly the insurance market has changed or that particular kit plane has developed a poor accident record and in-motion hull insurance coverage is no longer available. There is no easy solution to this problem except to say that you may need to be prepared to “self-insure” the in-motion hull coverage. Liability and not-in-motion hull coverage is available under the COPA Silver Wings Plan. For the aircraft builder you may want to consider “work in progress” insurance. It covers the value of the aircraft and parts that you have while you build. This can be important as most homeowners’ policies specifically exclude aircraft. That means if your home burns down the home and furniture may be covered but the plane won’t be. “Work in progress” insurance is also available from Marsh Insurance under the  HYPERLINK "http://www.copanational.org/non-members/insur.htm" COPA Insurance Program. Once you are ready to fly your new aircraft you will want to make sure that you have insurance in place! There is more background information about what aviation insurance is all about in Herb Cunningham’s article  HYPERLINK \l "UnderstandingAviationInsurance" Understanding Aviation Insurance. Aircraft Financing Until recently, specialized aircraft financing has been difficult to find in Canada. American pilots have several programs to choose from, but with Canadian finance laws these programs cannot write loans in Canada, unfortunately. The good news is that Canadians now have four dedicated sources of financing available! These are: John Mealey, LiftCapital Corporation. LCC Aircraft Finance is a Canadian owned and operated finance company with many years experience in aircraft financing. LCC provides single purpose asset based financing for new and used fixed and rotary wing aircraft for personal or commercial use for any amounts greater than $50,000. LiftCapital Corporation, John Mealey, Vice President, Commercial Finance, Valhalla Executive Suites, 300 The East Mall, Suite 401, Toronto, Ontario M9B 6B7 416-621-5522 ext 229, tollfree 800-530-0225, Fax 416-621-0522  HYPERLINK "http://www.liftcapital.ca" www.liftcapital.ca  HYPERLINK "mailto:jmealey@liftcapital.ca" jmealey@liftcapital.ca Julie Stevenson, Royal Bank of Canada, Main Branch Victoria, BC, 250-356-3350;  HYPERLINK "mailto:julie.stevenson@rbc.com" julie.stevenson@rbc.com. Julie has the ability to put together aircraft financing through any branch of the Royal Bank and has written loans for many COPA members in the past year. Julie Stevenson, Account Manager, RBC Royal Bank, 304 Cook St, Victoria BC V8V 3X6, Phone 250-356-3392 Fax 250-356-4682  HYPERLINK "mailto:julie.stevenson@rbc.com" julie.stevenson@rbc.com Commercial Leasing Group Inc, a Division of Commercial Funding Group, Inc. Lease to own aircraft up to $250,000 Commercial Leasing Group provides services across Canada for Single Engine, Twin Engine, Sale – Leaseback, Agricultural, Chartered, Flight Schools, Individuals or Corporations. For personal and confidential service contact Michael Maurer 905-762-0484 ext. 222 905-762-0494  HYPERLINK "mailto:michael@cfgroupinc.com" michael@cfgroupinc.com  HYPERLINK "http://www.commercialfundinggroup.com" www.commercialfundinggroup.com Light Aircraft Financial Services Ltd. Providing aircraft loan brokerage services in Alberta only. Contact Adrian Winship Box 10  Site 15  RR #7, Calgary, Alberta  T2P 2G7 Phone & Fax: (403) 280-3631   HYPERLINK "mailto:lacfinancial@efirehose.net" lacfinancial@efirehose.net   HYPERLINK "http://www.lightaircraftfinancial.com" www.lightaircraftfinancial.com Of course you also have the option of working with your regular bank or credit union for a loan. The most common methods here are: Second mortgage (most banks are very keen to lend you money against the equity in your home, even for airplanes) Personal loan Line of Credit Talk to your favourite loans officer at your bank or credit union for more information about getting a loan to buy an aircraft. Aircraft Brokers & Dealers Aircraft brokers and dealers are professional sales people who can do most of the work of finding and assessing a used aircraft for you. They can be a great resource in finding your dream plane, particularly if you don’t have the time or inclination to spend a lot of time looking for one yourself. For more information on the services that they can offer, have a look at Garth Wallace’s article  HYPERLINK \l "BrokersAndDealers" What You Need to Know about Aircraft Brokers and Dealers. Useful Resources There are many great sources of information on buying an aircraft, particularly on the Internet. Here are some you may want to have a look at: Canadian Owners and Pilots Association website  HYPERLINK http://www.copanational.org www.copanational.org Transport Canada Civil Aircraft Register  HYPERLINK http://www.tc.gc.ca/aviation/activepages/ccarcs/en/default_e.asp?x_lang=e http://www.tc.gc.ca/aviation/activepages/ccarcs/en/default_e.asp?x_lang=e Transport Canada Canadian Aviation Regulations (CARs)  HYPERLINK "http://www.tc.gc.ca/civilaviation/regserv/Affairs/cars/menu.htm" http://www.tc.gc.ca/civilaviation/regserv/Affairs/cars/menu.htm Transport Canada’s “How do I?” series of online pamphlets that tell you how to register all kinds of different aircraft:  HYPERLINK http://www.tc.gc.ca/CivilAviation/general/CCARCS/menu.htm http://www.tc.gc.ca/CivilAviation/general/CCARCS/menu.htm Transport Canada on-line Airworthiness Directives (ADs)  HYPERLINK "http://www.tc.gc.ca/aviation/applications/cawis-swimn/awd-lv-cs1401.asp?rand" http://www.tc.gc.ca/aviation/applications/cawis-swimn/awd-lv-cs1401.asp?rand= Transport Canada Amateur Built aircraft exemption to CAR STD 507 Appendix C  HYPERLINK "http://www.tc.gc.ca/aviation/applications/exemptions/docs/en/1298.htm" http://www.tc.gc.ca/aviation/applications/exemptions/docs/en/1298.htm Transport Canada Limited Category (including warbirds) exemption to CAR STD 507 Appendix F  HYPERLINK "http://www.tc.gc.ca/aviation/applications/exemptions/docs/en/1427.htm" http://www.tc.gc.ca/aviation/applications/exemptions/docs/en/1427.htm Aircraft Type Clubs Aircraft type clubs can provide a wealth of information on specific aircraft types and variants. There are literally hundreds of these clubs around the world providing services to many, if not most, aircraft types that have been produced in any significant numbers. There are type clubs for certified aircraft, of course, but there are also ones for amateur-builts, ultralights and warbirds. Type clubs vary a lot in the services they offer and how they work. Some are simply volunteer clubs run by one enthusiast, using a free web service to provide a website. These often have minimal publications or services. On the other end of the scale some of the largest types clubs have a fulltime staff and offer a full range of services. Here are services that some type clubs offer: A magazine with aircraft type-related information, news and events A website, often with type-specific buyers checklists Technical support from aircraft type experts Buyers’ guides Conventions and fly-ins Lists of ADs that apply Lists of STCs available Type specific classified ads (often on-line) Background and aircraft type history information Maintenance tips publications Operating tips information Maintenance and aircraft systems courses Aircraft type conversion training programs Aircraft type specific insurance (often available in the USA only!) Formation flying training Scholarships Many other possible services In some cases, with popular designs you may find that there are competing type clubs that both offer services for the same aircraft type or types. In those cases you have the choice of clubs, or you can join them all! COPA supports aircraft type clubs – they serve a great need in the aviation world, providing type-specific technical information that is not provided by anyone else. Consider joining and supporting the club for the type of aircraft that you buy – most of them are well worthwhile. COPA has listed all the aircraft type clubs that we are aware of on the HYPERLINK "http://www.copanational.org/non-members/AircraftinCanada/AircraftinCanadaCertified2.htm"COPA Website. We welcome submissions of clubs that are not on the current COPA list. Send your club contact info to  HYPERLINK "mailto:benefits@copanational.org" benefits@copanational.org. What if you check and discover that there is no type club for your aircraft type? Well then consider starting one. With free web services on which to post a website, it can be done at no cost. If nothing else you will meet many more fans of the aircraft type you own and from around the world, too! Aircraft Purchase Checklist Here is a checklist that brings together all the things that you may want to consider in buying a used aircraft in Canada. For purchase of a kit or a foreign aircraft you will need to add a few items to this list, as required. Decide what category and type of aircraft meets your needs Determine if you afford to buy and run the aircraft. Ensure you qualify to own a Canadian aircraft Locate the individual aircraft that you wish to purchase Contact the seller for initial information Arrange to see the aircraft, if possible Fly the aircraft! Have a pre-purchase inspection done on the aircraft Inspect the aircraft documents including: The Journey Logbook The Technical Record The Certificate of Registration The Certificate of Airworthiness or Special Certificate of Airworthiness The record of the last annual inspection Pilot Operating Handbook (if applicable) Current Weight and Balance Report Airworthiness Directives complied with (if applicable) Negotiate a price Make an offer to purchase Give the seller a deposit. Arrange financing (if required) Conduct a title and lien search Use an escrow service to complete the transfer of funds (if required) Complete the sale, by paying the seller and receiving the keys and any loose equipment included in the sale. The seller signs at least three copies of the Bill of Sale: One copy to the seller One copy to the buyer One copy for Transport Canada The seller sends in the C of R card to cancel the registration. The buyer retains the temporary C of R and completes the paperwork to apply for a new C of R with the Transport Canada Regional office. The buyer will submit: A copy of the Bill of Sale The completed Transport Canada form Registration 26-0478 for a new Certificate of Registration A Fit for Flight Form (FFFF) if the aircraft is an Advanced Ultralight Pay the fee for a new C of R of $110 For complete information on this procedure see the Transport Canada website:  HYPERLINK http://www.tc.gc.ca/Civilaviation/general/ccarcs/reregister.htm http://www.tc.gc.ca/Civilaviation/general/ccarcs/reregister.htm Conduct aircraft type training as needed. Fly your aircraft home and enjoy the adventure that is owning your own aircraft. Part II Articles on Buying an Aircraft These articles were first printed in COPA’s newspaper, COPA Flight and other COPA publications. They contain lots of first-hand advice on buying an aircraft. Buying Your First Aircraft? Be Patient! By Darin and Lisa Graham In the spring of 2000 we both completed our Private Pilot Licences and started to strongly consider buying our own plane. As new pilots looking for our first aircraft it seemed like a daunting task. We wanted to ensure that we made the right choices so that we could purchase something we would enjoy for years to come. It was a long process as it took us over a year to complete. In the end we were very happy about our decision and we certainly learned a lot along the way. We think our experience can be summed up in two words – “be patient.” Here are some hints of what we mean. B – BEGINNING Start by determining your needs. What are your major uses for the aircraft – advanced training, local flights, cross-country on weekends, how much you plan to fly, availability, willingness to share. What are the load requirements – number of people, how much fuel, and baggage? What really are the “must haves” and what are the “nice to haves” – engine size, speed, range, fixed/retractable gear, seating, instruments. The answers to these questions are the foundation of your search so you need to be honest with yourself. Remember, the more toys you include the bigger the up-front and on-going costs. E – EXPENDITURES Calculate how much you can spend. The first cost is the initial purchase price – and don’t forget the taxes. Even if you find the “perfect” plane, there will be things that need to be done right away. Your first annual inspection will likely be expensive, as the mechanic will want all of those things fixed that the previous owner hadn’t done. It has been said, “the purchase price of an aircraft is the down payment on the maintenance.” Always keep reminding yourself of this. Determine the “hourly rate” – this is made up of fixed costs (insurance, storage, annual inspection, loan payments) and hourly/variable costs (fuel, oil changes, regular maintenance). Don’t forget to include a contingency for surprises and that engine overhaul that needs to be done when the time comes. Once you have the total costs for a year, divide it by the total hours you hope to fly to get the hourly rate. First thing, the average pilot flies less than 50 hours per year – so don’t over inflate this number to get the hourly rate down. Second, compare this to renting to see if you are really ahead. Third, don’t kid yourself into thinking it will have minimum impact on your budget. Make sure you discuss it with your family, as you want to make sure things keep running smoothly on the home front. Consider other options: renting, partnerships, purchasing block time, fractional ownership. For information on  HYPERLINK "http://www.copanational.org/members/COPAGuides/COPAGuidetoEstimating.htm" estimating aircraft operating costs see COPA’s Website under “Members Only,” select “Aviation Guides.” This link is an aircraft operating cost estimating program developed by Adam Hunt, COPA manager of membership services. It only operates on Microsoft Excel 2000 or XP software for PCs. P – PREPARATION. Do your homework. Use the Internet, as there is loads of information about various aircraft and lots of flying organizations that have their own Web sites. There is a great wealth of knowledge in the member’s only section of the COPA website. If you’re not a COPA member, become one right away as it will pay off in more ways than one. COPA’s website  HYPERLINK "http://www.copanational.org" www.copanational.org lists  HYPERLINK "http://www.copanational.org/non-members/Annual/COPAAnnualMain.htm" flying organizations and associations. Talk with people: other owners and pilots, flight schools and clubs, mechanics, etc. Narrow down the list to a couple of types of aircraft as soon as you can. This will help you focus your search as you can easily get swamped with trying to keep track of all the possibilities. Read everything you can: books and articles on how to buy used aircraft, engine overhauls, instrument guides, inspection and maintenance. We even found a book that is a compilation of articles from owners about all the things they found that went wrong with Pipers over the last 20 years. There are a few good Web sites and aircraft trading magazines that post aircraft for sale. Use these to determine the going price and availability for the types you are looking for. This will definitely make you adjust your thinking about your needs and how much you can spend. Prices usually are well correlated with a few parameters: airframe TTSN (total time since new), engine time SMOH (since major over haul), instrumentation (a nice IFR panel, for example), propeller inspections, and interior/exterior rating (usually out of 10). Find out the approximate “BlueBook” value and consider typical appraisal estimations. A – ANTICIPATE Getting “your ducks in a row” early is important. Get quotes for insurance from a couple of sources and learn everything you can about the types of insurance. Select the coverage and a company that best meets your needs. Contact your lawyer to review all of the general agreements in advance and have them ready to do a lien check at a moment’s notice. Talk to your financial institution or bank to ready them for any funding you may require. Find out where you’re going to store the plane (location, hangars, tie-down) and how much it’s going to cost for the service. Most important is to find a mechanic you can trust and who is familiar with the type of plane you are looking for. This is an important relationship – not just at the inspection stage, but throughout the time you will own your aircraft. Talk with people and search out the best mechanic you can find. Start to build this relationship early in the process and discuss your plans for your search. Don’t forget to talk with Transport Canada, as they will help you understand the required steps you need to go through when transferring the ownership. Having all of this work done in advance helps relieve the pressure as the deal draws near and prevents any delays when timing may be critical. When the right plane comes along, things can move very quickly and you don’t want to miss the opportunity because of something you didn’t anticipate. Remember, the market is tight and if you are looking at a certain plane the chances are good that someone else will be too. T – TIDINESS Lists, lists and more lists help keep things tidy and organized. We’re great believers in making lists to help you out as it ensures that something hasn’t been missed. In our search we saw lots of helpful lists, but nothing comprehensive – so we created our own by combining the others. It is also important to tailor the lists to include specific items and problems related to the type of aircraft you are considering. We made lists for everything: requirements and needs, questions for the owner, walk around, test flight, pre-purchase inspection, log reviews, aircraft compliance (ADs, SBs, STCs), documents to be completed, contacts, etc. You might even want to include a list of all the lists you made so you don’t miss using a list when you are supposed to. I – IDENTIFYING Finding the right aircraft takes time. This is the most time consuming part and can become discouraging very quickly. Use the Internet, brokers, COPA, aircraft newspapers, trade magazines, friends, fly-ins, postings at flying clubs and airports. Don’t be surprised when you find out that the average age of the used aircraft in operation today is about 30 years! Brokers can help, but make sure they are working for you – after all, in reality you will be paying their cut (about 6 per cent in the purchase price) if you buy the aircraft. A good broker will look at lots of aircraft and will only choose to represent the best ones they find. There can be a lot of junk out there if you are not careful – Caveat Emptor (buyer beware). If you get one imported from the United States, find someone who knows how to do this, as it involves plenty of paperwork and can be full of hidden surprises. Importing may appear cheaper at first, but you may not be ahead as much as you think as there are a lot of regulations and maintenance issues. Make notes on every aircraft you consider, so that you can reference the information later. If you think you’ve found a possible aircraft, make a phone call (it’s cheap) and use your list to get answers to all your initial questions. If the owner doesn’t know the information and doesn’t seem to want to find the answers, run away as fast as you can. If it looks like a good possibility, ask the owner to photocopy the recent logbook (journey, engine, propeller, and airframe) entries for you. Be willing to pay for this, it’s only fair, and shows the owner that you are truly interested. When you get them, review the logs for any glaring issues and omissions. COPA’s Web site has information on  HYPERLINK "http://www.copanational.org/non-members/Maintenance/MaintenanceAircraftBrokers.htm" aircraft brokers. E – EXAMINING Now that you think you have found the right aircraft, the bucks start to seriously flow. It’s time to go see it, or have it brought to you. Even before you start, be skeptical and you must be willing to walk away at any time. We did walk away from the first serious one we found because we were concerned about some items, even though the deal was well along the way to being complete. The last thing you want is to be over enthusiastic, as the owner will know he has a “live one hooked.” Take a pilot friend to make sure you are level headed and not too excited that you found “the right one.” When looking at the plane, follow your lists and do the best darn walk-around you have ever done. Paint is cheap and can cover a lot of evils. Engine and instruments are the most costly to buy and keep up. Never belittle an airplane you are looking at. It is the owner’s pride and joy. In fact, build a friendship with the owner. You will have much to learn from them even after you buy their aircraft. We certainly did and continue to do so. Never buy a plane that you haven’t been in for a test flight. Make sure you go up with the owner and make sure they know they are PIC. Watch every move they make in going over the preflight checklist and during flying. If they skip something, you need to ask why. If you think it meets your expectation, the time has come to negotiate a price, put a deposit on it and sign a purchase agreement. This holds the aircraft for you. Make sure that you include a pre-purchase inspection by a mechanic of your choice as a presale requirement. Also list the navigational equipment, instruments and other items (canopy covers, tow bar, etc.) in the agreement. N – NECESSARY Now is the time for the pre-purchase inspection – get one done! There are a bunch of things you can have done even before the pre-purchase inspection is started. Have your lawyer do a lien search to see if the owner really owns the aircraft or if they have used it for collateral to buy something else. Ask the owner to have an oil analysis done. It’s the only way to get an idea about what’s going on inside the engine without taking it apart. Let your mechanic review the photocopies of the logs in advance to see how well the aircraft has been kept. Make sure all of the Airworthiness Directives (ADs) are complied with. The pre-purchase inspection is best done at your home base with your mechanic. Do not have it done by the mechanic that has been servicing it for the current owner. Have your mechanic make a written report and point out all of the things that need to be corrected, and an estimation of the costs to fix them. The pre-purchase inspection will cost you some money but it will be the best money spent during your ownership experience. It finds the problems before they are yours and gives you a negotiating position to have the current owner do the required work or to lower the price. A few hundred dollars at this time could save you thousands, or even find a showstopper. Remember that no aircraft is perfect and you should expect that there will be things that you as the new owner will have to take care of. T – TRANSFER Completing the deal is easy once you have negotiated the price and any work to be completed. It’s time for the financing and insurance to be activated. There is some paper work: bill of sale, Transport Canada change of ownership and interim certificate of registration, receipts, and of course, the exchange of a nice, large cheque for keys, logbooks, other equipment, and documents. If you didn’t buy the aircraft you may have to pay for transporting it back. If you did buy it, you may have to pay for it being brought to you and sending the pilot home. Let the storage facility know that you have a new aircraft to put there. Don’t expect to go flying right away. Now it’s time to do the fixes that the mechanic found. Spend some time with an instructor familiar with the aircraft to do a complete check out: stalls, steep turns, slow flight, forced approaches, circuits, circuits and more circuits in cross-winds. And if you’re night-rated, don’t forget about night landings too! It may seem to be a complex and long process, but breaking it down into smaller steps helps a lot. Patience is rewarded, and with some preparation, time and effort you can even do it yourself (with a lot of help from your friends). The journey in finding that “right aircraft” is an adventure in itself and we have enjoyed it (so far). Before you know it, you will be starting to “bond” with your very own aircraft. Darin and Lisa live northwest of Ottawa. Darin’s interest in flying began when he was studying Aerospace Engineering at the University of Toronto. Like a smart husband, Darin knew that he couldn’t start to fly until he had saved enough money so that Lisa could take lessons too. They began training at Ottawa Aviation Services and each completed their PPL in June 2000. Two days later they discovered that not only can they wallpaper together but can also fly together. Their search for an aircraft resulted in the purchase of a 1973 Piper Cherokee 140 with a nice IFR instrument package and a few extra horses under the cowling. Both continue IFR training in their new aircraft and explore airports far and wide. The First Year Of Aircraft Ownership By Darin & Lisa Graham In the August 2001 edition of COPA Flight we told you about buying our first air