Escrow Company

Does anyone know of a good escrow company that I could use to transfer funds from a current Cirrus contract owner to myself?
Or
Does anyone that has bought another contract from a position holder know of a safe way around all this?

Does anyone know of a good escrow company that I could use to transfer funds from a current Cirrus contract owner to myself?
Or
Does anyone that has bought another contract from a position holder know of a safe way around all this?

I had my attorney act as escrow agent. The regular escrow agencies don’t seem to know what to do when there’s no actual airplane involved.

I did this without even opening any kind of a bank account; it was all done with checks made out to the various parties, and a list of instructions as to who gets what when.

I can even supply you with the contract and escrow language that I used if you would like.

Does anyone know of a good escrow company that I could use to transfer funds from a current Cirrus contract owner to myself?
Or
Does anyone that has bought another contract from a position holder know of a safe way around all this?

I had my attorney act as escrow agent. The regular escrow agencies don’t seem to know what to do when there’s no actual airplane involved.

I did this without even opening any kind of a bank account; it was all done with checks made out to the various parties, and a list of instructions as to who gets what when.

I can even supply you with the contract and escrow language that I used if you would like.

                                                                                                   I bought a spot from a very nice person in CA. I sent him a check, he sent paperwork to CD. It all went off without a hitch. I suppose I can, and do consider myself fortunate. Isn't it sad we seem to have lost trust in each other?

Does anyone know of a good escrow company that I could use to transfer funds from a current Cirrus contract owner to myself?
Or
Does anyone that has bought another contract from a position holder know of a safe way around all this?

I had my attorney act as escrow agent. The regular escrow agencies don’t seem to know what to do when there’s no actual airplane involved.

I did this without even opening any kind of a bank account; it was all done with checks made out to the various parties, and a list of instructions as to who gets what when.

I can even supply you with the contract and escrow language that I used if you would like.

I bought a spot from a very nice person in CA. I sent him a check, he sent paperwork to CD. It all went off without a hitch. I suppose I can, and do consider myself fortunate. Isn’t it sad we seem to have lost trust in each other?

 I agree 100%. I also have bought many things that cost lots of money just by sending the check and never had any problems. I hope to continue not to have problems. If you can trust someone you will always get a better deal. If you can't don't waist your time.

 Cheers,

 Woor

I both bought and sold a position with no escrow agent. I bought it in a face-to-face exchange of money and paperwork, and sold it to (another) “very nice person in CA” without a face-to-face. Worked out fine both times, but I agree there was a risk that something could have gone wrong.

Joe

I bought a spot from a very nice person in CA. I sent him a check, he sent paperwork to CD. It all went off without a hitch. I suppose I can, and do consider myself fortunate. Isn’t it sad we seem to have lost trust in each other?

I agree 100%. I also have bought many things that cost lots of money just by sending the check and never had any problems. I hope to continue not to have problems. If you can trust someone you will always get a better deal. If you can’t don’t waist your time.

Cheers,

Woor

I bought a spot from a “nice person in Minnesota”, and it went like this:

First, nothing is “final” until Cirrus signs the transfer document, which affords some security to both parties.

The nice man in Minnesota signed the transfer document and sent it to me.

I sent him a check, signed the transfer document, and sent it to Cirrus.

When the check cleared, he told Cirrus to sign the transfer document. They sent me a signed copy along with the other paperwork.

Sure, the procedure could be full of holes, but I was comfortable enough with it.

Konrad

I bought a spot from a “nice person in Minnesota”, and it went like this:

First, nothing is “final” until Cirrus signs the transfer document, which affords some security to both parties.

The nice man in Minnesota signed the transfer document and sent it to me.

I sent him a check, signed the transfer document, and sent it to Cirrus.

When the check cleared, he told Cirrus to sign the transfer document. They sent me a signed copy along with the other paperwork.

Sure, the procedure could be full of holes, but I was comfortable enough with it.

When I bought my earlier position from “a nice guy in Ohio”, he had an acquaintance who was an attorney; we asked him to be in effect the escrow agent. From my perspective here were the pros and cons:

Pros:

  • it gave me a “professional” with an office (i.e. yellow pages listing, registered with the Bar Association [yes, I checked], etc.) to deal with during the transfer. That way, if something went wrong, there was at least a verified business address to know where to go a-knocking.

  • it was probably cheaper and easier than going through a traditional escrow agent.

Cons:

  • it did cost a couple hundred bucks. Luckily the gentleman I bought the position from was willing to share the expenses.

In the end, it all worked out, which means I probably “should have” just trusted the guy I bought it from and saved some money, since he obviously was an honest, legitimate guy. But with the cost of a position being more than the cost of some cars, I didn’t feel comfortable just blindly sending a check to some guy I had never met. There are just too many things that could have gone wrong.

In particular, when I talked to Cirrus, they seemed decidedly uninterested in facilitating the transfer at all (understandable, given the potential liability and complications if something goes wrong).

For example, in the transaction you described, Konrad, what if you had been a bad person and decided not to send the check to the guy you bought the position from? If you had a signed transfer form, wouldn’t Cirrus have been obligated to transfer the position? (i.e. it would be your word against the seller’s, with you holding the seller’s signature on the form).

Conversely, if Cirrus had an agreement to wait until they heard from the seller before completing the transfer, what if that guy had decided, after cashing your check, not to give the verbal go-ahead to Cirrus? Again, Cirrus would be in the middle – should they believe that you sent the check or should they beleive the seller if he fraudulently tells them he didn’t get the money?

In my opinion, it might be worth doing some kind of arrangement with an attorney or escrow agent, if for nothing else than the peace of mind. But maybe I’m just not a trusting enough person!

Just my 2 cents worth.

Steve

I also did a deal by fax and mail all went well done just before holidays pilots are honest although someone could pull a scam mine went well i made a math mistake I piad 2500 to much Tom sent a check for over payment rite away. From Don

I was actually willing to just send a check (which in retrospect, given the size of the check, probably wasn’t that smart) but the seller wanted to use escrow (or do it face-to-face in a room with a fax machine, which we couldn’t work out), as it protected both of us. Once Cirrus executes the transfer, the buyer effectively pockets the seller’s $30K even if no money has changed hands.

It’s a little like those movies where one guy says “show me the goods” and the other guy says “show me the money” and then they both grab.

One reason that we ended up without an escrow account, other than the hassle of setting it up, is that apparently the state bar of California convinced the legislature to pass a law requiring that any time an attorney opens an escrow account, they have to tithe to the bar association. As a result, almost nobody does…

For those folks who want my contract language, I apologize; I left it in my other computer, which is 750NM away as the flight planner flies, so it may be a couple of weeks before I can get to it.