How to deal with Aircraft Damage during a Pre-Purchase Inspection

If an aircraft is damaged during a pre-purchase inspection, it can lead to a complex situation that requires careful handling by all parties involved—the buyer, seller, and the facility conducting the inspection.

The first step is to assess the extent of the damage. The inspection facility will document the damage, including photographs and a detailed description. This assessment will help determine whether the damage is minor or significant. The inspection facility will promptly inform both the buyer and the seller about the damage. Open and honest communication is essential at this stage to avoid misunderstandings and disputes. If the damage is minor and can be repaired relatively easily, the parties may discuss the cost of repairs. The buyer and seller will negotiate who should cover the repair costs and whether it affects the purchase price. The terms and conditions of the purchase agreement or contract between the buyer and seller play a crucial role in determining how to proceed. These contracts often specify whether the buyer can request repairs or a reduction in the purchase price in case of damage during the pre-purchase inspection.

Depending on the extent of the damage and the terms of the agreement, the buyer has several options. The buyer can request that the seller covers the cost of repairs. In this case, the repairs would need to be completed before the sale can proceed. The buyer may negotiate a reduction in the purchase price based on the estimated cost of repairs, allowing them to take care of the repairs themselves after the sale. If the damage is extensive or the parties cannot come to an agreement, the buyer may choose to walk away from the purchase, and any earnest money or deposit would typically be returned. The seller is typically responsible for covering the cost of repairs if the damage occurred during the inspection and was not previously disclosed. However, this can vary depending on the specific terms of the purchase agreement. All agreements, including any repairs or price reductions, should be documented in writing and signed by both parties to avoid future disputes. The seller may have aviation insurance that can cover the cost of repairs in cases of damage during a pre-purchase inspection. It’s important to check the insurance policy for coverage details. If the situation becomes contentious or complex, it’s advisable for both parties to seek legal counsel to ensure their rights and responsibilities are protected.

When an aircraft is damaged during a pre-purchase inspection, the key is communication, adherence to the terms of the purchase agreement, and negotiation to determine how to address the damage. Buyers and sellers should consult with their legal advisors to ensure a fair and legally binding resolution to the issue.