Aircraft Registration vs. Bill of Sale: Key Differences Explained

You just shook hands on your first airplane deal. The keys are in your hand. Your heart is racing. But then the seller hands you a stack of papers, and suddenly you feel lost. Which form proves you own the plane? Which one lets you take off tomorrow morning?

Many new owners get confused about their paperwork. You're not alone. Luckily? Once you understand the difference between aircraft registration and a bill of sale, everything clicks into place.

Think of it this way. A bill of sale proves the plane belongs to you. Registration gives you permission to fly it. They're two different jobs. Both matter. And mixing them up can ground your plane for weeks.

This post walks through the differences between aircraft registration vs. bill of sale, what each document does, and why you need both sitting in your aircraft file before you start your engine.

Key Takeaways

Aircraft registration and a bill of sale serve different purposes but work as a team. The bill of sale proves you own the airplane (like a deed proves you own a house). The registration is your government permission to fly that airplane legally. You can't get registration without a bill of sale. You can't fly legally without registration. The bill of sale is created when you buy the plane. Registration comes from the FAA and lasts seven years. You need both documents to own and operate your aircraft the right way.

What Happens When You Buy an Aircraft?

Buying a plane feels different from buying a car. The moment money changes hands, a lot happens fast. The seller signs a bill of sale. That piece of paper says the aircraft now belongs to you. Right then, at that exact moment, ownership moves from them to you.

But here's the catch. You can't just hop in and fly away.

You need to register the plane with the Federal Aviation Administration. That's the FAA. They're the government group that tracks every aircraft in America. Without their registration certificate, flying your new plane breaks the law.

Here's how the process works step by step:

• You and the seller sign the bill of sale together. This proves the sale happened and the plane is yours.
• You fill out a registration application. This form tells the FAA you're the new owner.
• You send both papers to the FAA. They need proof you own it before they assign you permission to fly it.
• The FAA sends you a temporary paper. You can fly with this inside the United States while you wait.
• A few weeks later, your permanent registration arrives. Now you're all set.

The whole thing takes planning. You can't skip steps. The legal paperwork needs to be right, or the FAA sends it back. That means more waiting. Nobody wants that.

Most people get confused during this part because they think one document does everything. It doesn't. Each paper has its own job. The bill of sale proves the purchase. The registration lets you operate the plane without breaking rules.

Think of it like buying a house. You get a deed (that's like your bill of sale). But you also need permits to live there and make changes (that's like registration). Both matter. Both protect you.

Smart buyers start the registration process the same day they buy the plane. That way, they're flying legally as fast as possible. The fee to register your aircraft? Just five dollars. For that tiny cost, you get seven years of legal permission to take to the sky.

Why Aircraft Paperwork Is Different from Buying a Car

When you buy a car, you get a title. That single piece of paper does two things at once. It proves you own the car. It also lets you drive it legally once you register it with your state.

Aircraft work differently.

There's no such thing as an airplane title. Instead, you get two separate documents. The bill of sale proves ownership. The FAA registration gives you permission to fly. Why the split? Because aviation needs stricter tracking than cars do.

Here's what makes planes special:

• Planes cross state lines all the time. Cars mostly stay in one state. The federal government needs to track aircraft everywhere they go.
• Safety matters more in the air. The FAA sends important safety notices to registered owners. If your address is wrong, you might miss a critical alert about your plane.
• Ownership history matters. When you buy a used car, you care about the previous owner or two. With aircraft, people want to see the complete ownership chain going back years. That helps spot problems like liens or legal disputes.
• Different rules apply. Only certain people can register an aircraft. You need to be a U.S. citizen, a permanent resident, or a specific type of company. Cars? Anyone can own one.

The FAA keeps all aircraft registration records in Oklahoma City. That's where every document about your plane lives. When you submit your paperwork, it goes there. When you need to prove you own your aircraft, you look there.

Cars and planes also handle transfers differently. When you sell your car, the title moves to the new owner pretty fast. With aircraft, the seller must tell the FAA about the sale. The buyer must send in new paperwork. The old certificate gets returned. A new one gets created. It takes more steps and more time.

Here's another difference. Car registration renews every year or two. Aircraft registration lasts seven years. That's actually easier. Less paperwork. Lower costs over time.

But here's the tricky part that confuses people. Your car title proves you own it. Your aircraft registration does not prove ownership. That's the bill of sale's job. The registration just shows the government gave you permission to fly that specific airplane.

This split system protects everyone. It keeps clear records. It makes sure the right person operates each plane. And it helps the FAA track aircraft for safety reasons.

The Big Mix-Up Most Aircraft Owners Make

Walk into any hangar and ask someone what proves they own their plane. Most people point to their registration certificate hanging on the wall. They're wrong.

This mistake is so common that aviation lawyers see it every week. People think aircraft registration works like ownership proof. It doesn't. Here's the truth: your registration only shows the government gave you permission to fly that specific aircraft. It's like a legal license to operate.

The bill of sale proves you actually own the airplane.

Why does this mix-up matter so much? Because problems happen when people don't understand the difference:

• Someone tries to sue you over plane ownership. You wave your registration around. The judge says that doesn't prove anything. You need the bill of sale.
• You want to sell your aircraft. The buyer's lawyer asks for proof you own it. The registration won't work. They need to see your bill of sale and the complete chain of previous bills of sale.
• A bank wants to loan you money using the plane as collateral. They'll establish ownership by checking the bill of sale, not the registration.
• You're settling an estate after someone passes away. The FAA registration shows who could fly the plane. The bill of sale shows who actually owned it. Those might be different people if the plane was held in a trust.

Think of it this way. Your driver's license proves you can drive. It doesn't prove you own your car. Same idea with planes. The registration certificate proves you can fly the aircraft legally. The bill of sale proves it belongs to you.

Here's what each document actually does:

The Bill of Sale:

• Shows money was paid
• Proves the transfer happened
• Lists the exact plane being sold
• Has signatures from buyer and seller
• Creates a permanent ownership record

The Registration:

• Gets issued by the FAA in Oklahoma City
• Lets you operate the aircraft without breaking laws
• Expires after seven years
• Must be renewed to stay current
• Needs to be replaced when ownership changes

Many people learn this lesson the hard way. They buy a plane. They get their registration. They throw away the bill of sale thinking they don't need it anymore. Then something happens. They need to prove they own the airplane. And that bill of sale is gone.

Don't make that mistake. Keep your bill of sale somewhere safe. Make copies. Store the original with your other important papers. You'll need it someday.

The requirement is simple. You need both documents. The bill of sale proves you bought it. The registration proves you can legally fly it. Together, they complete the picture. One without the other leaves you grounded or unprotected.

How Bills of Sale and Registration Work Together (But Aren't the Same Thing)

Let's clear up the confusion once and for all. These two documents are teammates. They work together. But they play completely different positions.

What a Bill of Sale Actually Does

A bill of sale is your proof of ownership. Period. Think of it like the deed to a house. When you sign it, the aircraft becomes yours.

Here's what makes it powerful. This document creates a permanent record that money changed hands. It shows who sold the airplane. It shows who bought it. It describes the exact plane being sold. And it proves the transfer happened on a specific date.

You fill out FAA Form 8050-2 for this. The form is free. You can download it from the FAA website. Both you and the seller sign it. Make two original copies. Both copies go to you as the buyer. You keep one. You send the other to Oklahoma City with your registration application.

The bill of sale must include:

• The seller's full name (exactly as it appears on their current certificate)
• Your full name as the buyer
• The purchase price or the words "good and valuable consideration"
• A complete description of the aircraft (make, model, serial number, registration number)
• The date of sale
• Signatures from both parties

Here's something important. The seller's name must match their registration perfectly. If their FAA registration says "William James Smith" but they sign the bill of sale as "Bill Smith," the paperwork gets rejected. Names matter. Exact matches matter.

This document never expires. You own the plane forever (or until you sell it). The bill of sale stays in your files as permanent proof.

What Aircraft Registration Actually Does

Now let's talk about the registration certificate. This comes from the federal government. Specifically, it comes from the FAA aviation office in Oklahoma City.

Registration does one main thing. It gives you legal permission to fly the airplane. Without it, operating your aircraft breaks federal law. You could face fines. Your plane could get grounded.

To register your aircraft, you fill out Form 8050-1. That's your registration application. You send it to the FAA along with your bill of sale. You also include a five-dollar fee. Yes, really. Just five bucks.

The FAA looks at everything. They check that you legally own the plane (using your bill of sale). They check that you're allowed to own an aircraft. U.S. citizens can. Permanent residents can. Certain companies can. Once everything checks out, they assign you a registration number. That's your N-number. It goes on the outside of your plane.

Your registration certificate includes:

• Your name and address
• The aircraft description
• The N-number (like N12345)
• The date it was issued
• The expiration date (seven years later)

Here's the key difference. This certificate doesn't prove ownership. It proves the government said you can operate this specific aircraft. Think of it like a driver's license. Your license says you can drive. It doesn't say you own a car.

Registration expires. After seven years, you must renew it. The process is simple. The FAA sends you a reminder. You fill out a renewal form. You pay another five-dollar fee. They send you a new certificate.

Why You Need Both Documents

You can't have one without the other. They're a package deal.

Here's how they work as a team:

Step One: The Bill of Sale Comes First When you buy an aircraft, you and the seller sign the bill of sale. At that exact moment, ownership transfers to you. The plane is legally yours. But you still can't fly it yet.

Step Two: Use the Bill of Sale to Get Registration You take that bill of sale to the FAA. It proves you own the aircraft. The FAA uses it as evidence. Without it, they won't register the plane in your name. You submit both documents together: the bill of sale and your registration application.

Step Three: Registration Lets You Fly Once the FAA processes everything, they send you a registration certificate. Now you have permission to operate the airplane legally. You're good to go. But keep that bill of sale safe. You still need it to prove ownership.

Step Four: Both Stay Important As long as you own the plane, both documents matter. The bill of sale proves it's yours if anyone questions ownership. The registration must stay current so you can fly without breaking rules.

Think of it this way. You need a deed to own your house (bill of sale). You need permits to do renovations (registration). Both protect you in different ways.

The Process in Real Life

Let me walk you through a real purchase so you can see how this works.

Sarah finds a beautiful Cessna 172. She agrees to buy it for $50,000. Here's what happens:

Day One: The Sale Sarah and the seller meet. They complete the bill of sale. Both sign it. Sarah hands over the money. The plane is now hers. But the seller's registration is still on file with the FAA. Sarah can't fly yet.

Day Two: Starting Registration Sarah fills out her registration application (Form 8050-1). She makes three copies. She attaches one copy of the bill of sale. She writes a check for five dollars. She mails everything to the FAA in Oklahoma City.

Sarah keeps the pink copy of the application. This acts as temporary registration. She can fly the aircraft within the United States using this pink paper. It's valid while she waits for the permanent certificate.

Week Three: Permanent Registration Arrives The FAA processes Sarah's paperwork. They send her the permanent registration certificate. It's good for seven years. Sarah puts it in the aircraft. She files the pink copy away. She stores her bill of sale in a safe place.

Seven Years Later: Renewal Time The FAA sends Sarah a reminder six months before her registration expires. She fills out a renewal form. She pays five dollars again. They send her a new certificate. Simple as that.

Common Problems and How to Avoid Them

People make mistakes with these documents all the time. Here are the biggest ones:

Mistake #1: Names Don't Match The seller's name on the bill of sale must exactly match their current registration. Even small differences cause rejections. Check this carefully before signing anything.

Mistake #2: Throwing Away the Bill of Sale Some people think once they get registration, they don't need the bill of sale anymore. Wrong. Keep it forever. You'll need it to prove ownership if you sell the plane, face a legal challenge, or deal with an estate issue.

Mistake #3: Flying Before Registration You can use the pink temporary certificate to fly in the lower 48 states. But some people try to fly internationally with just the pink copy. That's illegal. You need the permanent certificate for flights outside the United States.

Mistake #4: Forgetting to Update Information If you move, you must tell the FAA within 30 days. If ownership changes, registration must be updated immediately. These aren't optional. They're legal requirements.

Mistake #5: Mixing Up What Each Document Proves Remember this forever: Bill of sale proves you own it. Registration proves you can fly it. Don't confuse the two.

The bottom line? Treat both documents with respect. File them carefully. Keep them current. Together, they establish your right to own and operate your airplane. One proves ownership. One gives permission. Both are absolutely necessary for anyone who wants to legally take to the sky.

Step-by-Step: The Right Way to Handle Both Documents

Let's make this super practical. Here's exactly what you need to do with each document during a plane sale. Follow these steps and you'll avoid the headaches that trip up so many people.

For Sellers: What You Must Do

Selling your aircraft? These steps protect you and make sure the transfer happens smoothly.

Before the Sale:

• Find your current registration certificate. Make sure your name matches exactly what's on file with the FAA.
• Gather all your aircraft logbooks and maintenance records. Buyers want to see these.
• Check that no liens exist on your airplane. A lien is when someone has a legal claim against your plane (like a bank if you have a loan). Clear these before selling.

During the Sale:

• Fill out the bill of sale using FAA Form 8050-2. You can get it free from the FAA website.
• Make two original copies of the bill of sale. Not photocopies. Two actual forms with real signatures on both.
• Write your name exactly as it appears on your registration. This is critical. "William" and "Bill" are different names to the FAA.
• Have both you and the buyer sign both copies of the bill of sale.
• Give both original copies to the buyer. They need them for their registration application.
• Make a photocopy for yourself before handing everything over. This protects you.

Right After the Sale:

• Remove the old registration certificate from the aircraft. Don't leave it in there. The plane isn't yours anymore.
• Fill out the back of that registration certificate. It asks about the sale. Complete it honestly.
• Mail the old certificate to the FAA in Oklahoma City within 21 days. This tells them you're no longer the owner.
• Call your insurance company immediately. Most policies end the moment you sign the bill of sale. Don't assume you're still covered.

Important seller tip: Get your money before signing anything. Wire transfers work best. Once you sign that bill of sale, ownership moves to the buyer right then. You can't take it back if their check bounces.

For Buyers: What You Must Do

Buying an aircraft? Here's your roadmap to get everything done right.

Before You Buy:

• Do a title search. This checks the ownership history of the airplane. It shows if anyone has liens or legal claims against it.
• Get a pre-purchase inspection from a mechanic. You want to know the plane is safe before you hand over money.
• Line up your insurance. You'll need coverage the moment you own the aircraft.
• Confirm the seller's name on their registration matches what they'll sign on the bill of sale. If it doesn't, ask them to fix their registration first.

At the Time of Purchase:

• Get both original copies of the bill of sale from the seller. Check that everything is filled out correctly.
• Take possession of all aircraft logbooks, maintenance records, and any other paperwork.
• Receive the aircraft keys.
• Keep one original bill of sale for your records. You'll send the other to the FAA.

Within Days of Purchase:

• Fill out your registration application (Form 8050-1). You make three copies of this form.
• The white copy and green copy go to the FAA. The pink copy stays with you.
• Attach one original bill of sale to the forms you're sending.
• Write a check for the five-dollar fee.
• Mail everything to the FAA Aircraft Registration Branch in Oklahoma City. The address is: FAA Aircraft Registry, P.O. Box 25504, Oklahoma City, OK 73125-0504.
• Keep the pink copy of your registration application in the aircraft. This is your temporary registration.

While You Wait:

• You can fly the aircraft within the lower 48 states using that pink copy. It's legal temporary authority.
• Don't try to fly internationally yet. The pink copy doesn't work outside the United States.
• The pink copy stays valid until your permanent certificate arrives or for up to 12 months, whichever comes first.

When Your Permanent Registration Arrives:

• The FAA will mail you the permanent registration certificate. This usually takes about three weeks.
• Put this certificate in the aircraft immediately. It must be onboard during all flights.
• File the pink copy away with your records. You might need it someday to prove when you bought the plane.
• Your certificate is good for seven years. Mark your calendar for when renewal is due.

Special Situations You Might Face

If You're Buying from an Estate: Sometimes you buy a plane after the owner passed away. The process is different. The seller must be the estate executor or an heir with legal authority to sell. They need extra paperwork showing they have the right to sell the aircraft. Ask to see these documents before you buy.

If the Seller Lost Their Registration: No problem. They can register for a replacement from the FAA. Or you can work around it. You'll need extra documentation showing the chain of ownership. An aviation lawyer can help with this.

If You're Buying Through a Dealer: Dealers handle some of the paperwork for you. But you're still responsible for making sure everything gets filed correctly. Don't assume they'll do it. Follow up. Check that your registration application was submitted. The requirement to register falls on you, the buyer, not the dealer.

If Names Don't Match Exactly: This happens more than you'd think. Maybe the seller got married and changed their name. Maybe they shortened their name over the years. The FAA won't accept mismatches. The seller needs to fix their registration before you can complete your purchase. They can update their information with the FAA, but it takes time. Plan for this.

Tips for Making Everything Go Smoothly

Double-check every name. Read each document carefully. Make sure names match across the bill of sale, the registration application, and the seller's current certificate. One wrong middle initial can delay everything by weeks.

Keep copies of everything. Before you mail anything to the FAA, make photocopies. If something gets lost in the mail, you'll have backup proof.

Use trackable mail. Don't just drop forms in a mailbox. Use certified mail or a delivery service that provides tracking. You'll know when the FAA received your paperwork.

Start insurance right away. Don't wait until you fly the plane. Get coverage the day you sign the bill of sale. Aircraft insurance protects you from expensive problems.

Plan ahead for international flights. If you want to take your new airplane to Canada, Mexico, or anywhere else, you need the permanent certificate. The pink temporary copy won't work. If you can't wait three weeks, the FAA offers a "Declaration of International Operations" that extends your temporary authority. It costs nothing but requires an extra form.

Budget for the full process. Yes, the registration fee is only five dollars. But factor in the cost of a title search ($100-$500), the pre-purchase inspection ($500-$2000), and your first insurance payment. Plan for these expenses so they don't surprise you.

Know when to get help. If your situation is complicated—maybe you're forming an LLC to own the plane, or you're buying from overseas, or there's some kind of lien issue—talk to an aviation attorney. They establish the correct paperwork the first time. That saves you money and frustration in the long run.

What Happens After You Submit Everything

Once your paperwork hits the FAA office in Oklahoma City, here's what happens:

Week 1: The FAA logs your documents into their system. They assign you a tracking number. You can check the status on their website using the aircraft inquiry tool.

Weeks 2-3: An FAA employee reviews everything. They check that your bill of sale is complete. They verify names match. They confirm you paid the fee. They look for any problems with the aircraft history.

If Something's Wrong: They mail you a rejection letter explaining the problem. You fix it and resubmit. This adds several more weeks.

If Everything's Right: They process your registration and mail your certificate. You'll get it within three to four weeks of submitting your paperwork.

After You Receive It: Your certificate becomes official the moment the FAA approves it. But you won't know the exact date until you receive it in the mail. Once you have it, you're fully legal to fly anywhere your plane can take you.

The key to getting through this process quickly? Submit clean paperwork the first time. Check every detail. Match every name. Include every required document. Get it right, and you'll be legally flying your new aircraft in less than a month.

Conclusion

You now know the difference that confuses so many aircraft owners. The bill of sale proves the plane belongs to you. The registration gives you permission to fly it. Both documents matter. Both do different jobs. And you need both to own and operate your airplane the right way.

Think about how simple it is. One document shows ownership. The other shows legal authority. Together, they keep you protected and keep you in the sky.

When you buy your next aircraft, you'll know exactly what to do. Sign that bill of sale. Fill out your registration application. Send everything to the FAA in Oklahoma City. Wait for your certificate. Then take off with confidence.

Don't let paperwork keep you grounded. Get both documents right, and you'll be cleared for takeoff.

Looking to buy or sell your aircraft? Flying411 makes the whole process easier. We help you understand every step, avoid common mistakes, and complete your paperwork correctly the first time. Visit Flying411 today to learn more about aircraft ownership and get expert guidance on your next aviation move.

Frequently Asked Questions

Can I fly my aircraft immediately after buying it?

Yes, but only within the lower 48 states of the United States. When you submit your registration application to the FAA, you get a pink copy. This pink copy acts as temporary registration. You must keep it in the aircraft during all flights. It stays valid until your permanent certificate arrives or for up to 12 months. However, you cannot use the pink copy for international flights. If you need to fly to Canada, Mexico, or anywhere else right away, you must request a Declaration of International Operations from the FAA.

What happens if the seller's name doesn't exactly match their registration?

The FAA will reject your registration application if names don't match perfectly. Even small differences like "William" versus "Bill" or a missing middle initial cause problems. The seller must update their registration before you complete the purchase. They can contact the FAA to fix their name. This process takes time, usually several weeks. Plan ahead. Check that the seller's name on their current certificate matches what they'll sign on the bill of sale before you agree to buy the aircraft.

Do I need to hire a lawyer to handle aircraft paperwork?

Most straightforward aircraft sales don't require a lawyer. If you're a U.S. citizen buying from another U.S. citizen, and there are no liens or complicated issues, you can handle the paperwork yourself. However, certain situations benefit from legal help: buying through a trust, forming an LLC to own the plane, dealing with liens, buying from an estate, or purchasing from overseas. Aviation lawyers know exactly what the FAA requires. They establish correct paperwork the first time, saving you from delays and rejections.

How do I prove I own my aircraft if I lose my bill of sale?

Losing your bill of sale creates problems because it's your main proof of ownership. The FAA keeps records of all bills of sale submitted with registration applications. You can request copies from the FAA Aircraft Registry in Oklahoma City. There's a small fee for this service. You can also search the FAA registry online to find your aircraft's ownership history. Always keep your original bill of sale in a safe place. Make copies and store them separately. Consider keeping digital scans as backup.

Can I register an aircraft if I'm not a U.S. citizen?

Non-citizens can register aircraft in the United States under specific conditions. If you're a permanent resident (green card holder), you can own and register an airplane just like a U.S. citizen. If you're not a permanent resident, you can use a trust arrangement where a U.S. citizen trustee holds the registration for you. Another option is the "Based and Primarily Used" exemption for foreign corporations. This lets non-citizen corporations register aircraft if the plane stays based in the U.S. and flies mostly domestic routes. These situations require extra documentation beyond the standard bill of sale and registration application.