1. The Owner hereby charges and appoints the Broker as the sole agent to sell the aircraft described herein and the exclusive right to list and solicit offers to purchase for a period of 90 days with extensions by mutual agreement between the Owner and the Broker. This Agreement will enter into force from that date, May 2020. This agreement will automatically continue with service life extensions as defined above until the relevant aircraft is sold or the aircraft brokerage contract either by the owner or by the broker. Termination must be made in writing within thirty (30) days of the expiration of this Agreement or the extension of this Agreement. Here are some steps that aircraft brokers have managed to do to establish, secure and finalize a successful aircraft sale: 3. In the event that the aircraft is sold by the broker within the aforementioned period, whether the sale is negotiated by the broker or directly by the owner, the owner accepts and promises to pay the broker a commission as a percentage (%) of the gross sale price. The commission is based on the overall selling price of the aircraft, including the value of an accepted trade. The commission is paid to the U.S. dollar dealer in funds immediately available at the time of closing the trust related to the transaction. The critical areas in which most transactions break up are due to the lack of a mandate agreement or NCND.
Without these documents, the buyer will not publish any Proof of Funds (POF), the Air Operator Certificate (AOC) and/or his/her professional and personal profile. In addition, without these documents, sellers or groups of sellers will not disclose the full details of the aircraft, as these documents indicate to the seller that the buyer is a willing and capable buyer. So if you don`t have these documents, it can quickly lead to the disintegration of the agreement. However, with the filing of the mandate, ncND and AOC in advance, transparency is established and both the buyer and the seller can confirm the interest from a financial point of view. The pre-purchase inspection marks the beginning of the final phase during which the buyer inspects the aircraft to determine if the asset is worth the offer price accepted in the Memorandum of Understanding. The buyer normally pays for the pre-purchase inspection and selects the maintenance, repair and overhaul (MRO)/maintenance facility which is experienced with the corresponding aircraft number/aircraft model. The buyer performs a logbook check/recording of all maintenance work carried out since the introduction of the aircraft. Then, a physical inspection of the aircraft airframe and engines will be completed and the results and recordings will be analyzed to determine if the aircraft will pass the inspection prior to purchase.
Tim Klenke of Duncan Aviation said this preferably, noting that „the purpose of a pre-purchase evaluation is to finalize a purchase decision by identifying issues that may affect the purchase price.“ 6. It is also agreed that the owner will pay the broker the aforementioned commission if: (a) the sale of the aircraft takes place during the period indicated above; or (b) any bona fide offer declined by the owner in an amount equal to or greater than 100%; or (c) any sale of the aircraft within ninety (90) days of the termination of this Agreement to someone with whom the Broker has communicated, manifested and/or negotiated its representative or representative of the undersigned during the period of this Agreement. . . .