Buying plane in receivership
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Greetings,

The page at https://pic.aopa.org/ starts with "What we can help with", and one of the four item is "Aircraft ownership". And yet, there's no such category on this site? It's a aOpa after all right? Please create appropriate category.

On to my main questions. What does that mean:

This plane is being sold as an item of an estate held by a Receivership. Any potential buyers will need to pursue a Purchase and Sale Agreement with the Federal Receiver in place to purchase this item

It is from this listing: C182 for sale. What does the listed price represent? What are the risks if I were to purchase the plane? What extra process is needed in addition to a non-receivership purchase?

Cheers!
TJ Kolev :)
2 Replies
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Thank you for the prompt and detailed reply!

Right, I also noticed some of the red flags. I was mostly interested in an explanation of what Receivership meant. Got the idea now. 

Cheers!
TJ Kolev :)
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1147 Posts
I can't speak to the legal issues other than to say the price almost certainly is "as is, where is" with no further warranties implied or expressed.  However, if the estate is in Federal receivership, I believe that means the estate owes Federal taxes it couldn't pay and the airplane has been seized.  That also suggests the deceased had serious financial problems.  Combine that with the fact that the plane has had no maintenance for over two years, and likely hasn't flown in nearly that long or more, and you get a picture of likely neglect.  Furthermore, the airplane has accumulated only 2250 hours in 54 years, which is very low utilization, and disuse breeds a lot of maintenance issues.  At 1700 SMOH, the engine is likely due for overhaul (recommended TBO on this engine is 1800, and it's apparently been neglected).  The lack of maintenance and failure to do the overhaul also suggest the owner was not willing/able to spend anything to take care of this airplane.

Further, it is clearly well out of annual, and with that background, you have to figure it will be an expensive annual before it can be flown at all.  You also may need an engine overhaul.  And while they say all AD's and SB's are complied with, nobody's checked that for over two years, so there may be an AD/SB surprise or two in there (starting with any recurring AD's which time has overtaken).  You could easily find yourself spending almost as much getting it into flying shape as you pay for the plane itself.  This is one which demands an expensive, possibly invasive, pre-purchase inspection by a diligent mechanic.  And if you're still interested in this one, before you take a step further, you want to get the maintenance records reviewed.  Your first step would be to get a complete copy of those records and have someone who knows how to dig into them to do so.

All things considered, if this is going to be your first airplane ownership experience, you might want to look for an airplane to which more care has been given.