Document when deposits are held, applied, refundable or subject to dispute, and align those terms with financing and inspection milestones. The label earnest money does not resolve the parties’ rights.
Define the deposit mechanics
Have counsel address recipient, amount, timing, application to price, refund conditions and release process. Identify what happens if financing fails, the aircraft is rejected under the agreed process or the seller cannot satisfy delivery obligations. Do not assume an oral description overrides signed documents or that money in escrow can be released on one party's demand.
Keep contingency language precise
Clarify the financing stage, required actions, evidence, deadlines and notices relevant to the actual transaction. A broad statement that the buyer needs a loan leaves important questions unanswered. The seller can seek a realistic process without representing that the buyer is approved or substituting its own assessment for the lender's decision.
Align inspection and finance dates
If final financing depends on valuation or technical review, make the calendar coherent with the inspection and acceptance process. Ask advisers to resolve inconsistencies before funds become committed. A buyer can be diligent yet face a condition that cannot be completed by an unrealistic deadline, and a seller can incur carrying cost while dates remain vague.
Plan the dispute and change process
Ask how a date extension, aircraft substitution, price adjustment or changed buyer entity will be documented. Retain approved amendments and communications through the appropriate channels. When a dispute arises, follow professional advice and the agreed process rather than assuming a worksheet or website explanation determines entitlement to the deposit.
Illustrative seller scenario
Illustrative only: a deposit is described informally as refundable until financing, while the written agreement uses a specific deadline and notice process. The parties should obtain advice and resolve the discrepancy before relying on either description. A request for more time does not by itself change the contract or authorize release of escrowed money.
Your next-step checklist
- Deposit instructions
- Defined contingencies
- Aligned milestone dates
- Documented amendments
Sources & further reading
Primary sources support the relevant facts. Our planning questions and illustrative exercises are editorial analysis; they do not replace transaction-specific advice.
- AOPA original purchase agreement guidance · accessed 2026-10-28