Chapter 2: Buying an Aircraft 2 2-3 Releasing a Recorded Lien When a Lien Is Recorded Maintenance Records Airworthiness Certificate Bill of Sale or Conditional Sales Contract Filing Ownership and Lien Documents Aircraft documents  also accept as a release a document that describes  the affected collateral, specifically identifies the lien,  and contains a statement releasing all lienholder  rights and interest in the described collateral from  the terms of the identified lien. The release document  must be signed in ink by the secured party and show  the signer’s title, as appropriate. m  CAUTION: Federal liens against an owner  (drug, repossession, etc.) may not show up on your  title search.  State law determines lien and security interests.  Although there is no federal requirement to file lien  or security instruments with the FAA, the parties to these transactions can file their qualifying  documents with AFS-750. You may search the aircraft records, or have this  done by an attorney or aircraft title search company.  m  CAUTION: FAA registration cannot be used in  any civil proceeding to establish proof of ownership. A new AC Form 8050-41 may be requested by con-  tacting AFS-750. You will need to describe the aircraft  and the lien document sufficiently to identify the  specific document needing release. AFS-750 contact  information is in the FAA Contact Information  appendix on pages A1–A2 of this handbook. There are numerous documents that should be reviewed and transferred when you purchase an  aircraft.  There is no substitute for examining the aircraft’s  records to secure an ownership history and to determine if there are any outstanding liens or  mortgages. This procedure should help avoid a delay in registering an aircraft.  The bill of sale or conditional sales contract is your  proof of purchase of the aircraft and will be recorded  with the FAA to protect your ownership interest. The aircraft should have either FAA Form 8100-2,  Standard Airworthiness Certificate, or FAA Form  8130-7, Special Airworthiness Certificate. Filing ownership and lien documents constitutes  formal notice to the world of the ownership and security interests recorded. A person who engages in a financial transaction involving a U.S. registered  aircraft who does not have a title search performed is taking a risk. Under the law, that person will be charged with knowing what is on file with the FAA,  even if he or she does not actually know. A simple  title search will show the federally recorded owner- ship and lien status of any aircraft registered in the United States. The previous owner of the aircraft should provide the aircraft’s maintenance records containing the  following information: When a security agreement or lien document is  recorded, the FAA sends an Aeronautical Center (AC) Form 8050-41, Conveyance Recordation Notice, to  the secured party. This notice describes the affected  aircraft (and other eligible collateral such as engines,  propellers and air carrier spare parts locations). It  also identifies the recorded document by its date,  the parties, the FAA recording number, and date  of recordation. This recordation notice is sent as a  confirmation that the lien has been recorded and  added to the aircraft record. The FAA Form 8050-41 may be used as a release if the secured party signs below the release statement  and returns the form to the AFS-750. The FAA may  • A copy of current major alterations to each  airframe, engine, propeller, rotor, and appliance.  • The current status of applicable ADs, including  for each the method of compliance, the AD  number, revision date, and if the AD involves  recurring action, the time and date when the next  action is required; and • The identification of the current inspection status  of the aircraft, including the time since the last  inspection required by the inspection program  under which the aircraft and its appliances are  maintained; • The time since last overhaul of all items installed  on the aircraft that are required to be overhauled  on a specified time basis; • The current status of life-limited parts of each  airframe, engine, propeller, rotor, and appliance; • The total time in service of the airframe, each  engine, and each propeller;