FAA Registry: New Procedural Changes Impacting Transactions

Recent FAA Registry changes are causing shifts in the way title/escrow agents are handling aircraft transactions. While some updates enhance efficiency, others create delays.

Here’s what these changes mean for those involved in closings:

Addressing Privacy Concerns

In December 2023, you may recall that the FAA removed access to Ancillary Documents, citing privacy concerns over Personally Identifiable Information (PII). This includes details like Social Security numbers, driver’s licenses, and loan numbers. The change restricted access to critical documents such as LLC Statements, Powers of Attorney, and Trust Agreements. This created challenges for the industry, making it harder to properly vet information for closing documents. Thankfully, escrow companies and law firms stepped in to push for change.

New “Work in Progress” Classification

Fast forward to December 2024, the FAA introduced another procedural change in the name of privacy. Now, any document filed but not yet recorded is classified as “Work in Progress” (WIP). Again, the idea is that the general public should not be able to view documents until an FAA examiner has reviewed the document for PII. 

The downside though is that there’s now a delay in being able to see those documents. We all know how quickly aircraft transactions can move, and a key component is running title work. In the past, there was immediate access to these documents which allowed you to plan and run complete title work. As it stands now, we can tell when documents have been filed, but we’re delayed in viewing them. 

While the intent is understandable, the delay in document access is impacting closings and transaction efficiency.

New Digital Registration Cards

For all of the negative changes, the FAA is making some positive ones. For example, they’re issuing digital registration cards. We probably get 7-10 emails a week of “I lost my hard card, can you order a new one?” Or “We’re supposed to leave tomorrow morning and we still don’t have our registration card.” In theory, these new digital cards should reduce lost card issues and expedite access for operators needing immediate documentation. 

More FAA Examiners

Another positive note is that the FAA has hired more examiners and they’re doing a good job of keeping up with the backlog. I don’t envision us ever seeing the 10-12 backlog that we saw during the COVID years. 

Communication

The biggest challenge remains the FAA’s lack of communication. These policy changes, good or bad, are always just rolled out without discussion. The industry is rarely consulted before these changes take effect. 

If given the opportunity, aviation professionals could provide insight into the real-world impact of new policies. While we can’t control these shifts, we must remain adaptable as the FAA continues making changes—both good and bad.