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Buying6 min readUpdated July 1, 2026

Understanding Aircraft Escrow: How Secure AAM Transactions Work

Escrow is the backbone of safe, high-value aircraft transactions. Instead of sending money directly to a stranger, both parties rely on a neutral, licensed third party to hold funds and documents until every condition of the sale is met. Here is how it works and why it is non-negotiable for AAM purchases.

What escrow actually does

A licensed escrow agent is a neutral intermediary. The buyer deposits funds with the agent; the seller delivers the aircraft and clean title; and the agent only releases the money once the agreed milestones are satisfied. Neither the buyer, the seller, nor the marketplace ever holds the other party's money.

The milestone timeline

A typical AAM escrow moves through a clear sequence of stages. Each milestone is documented, and both parties can see exactly where the transaction stands.

  • Escrow requested and accepted by both parties
  • Escrow opened with the licensed partner
  • Buyer funds deposited and confirmed
  • Pre-purchase inspection completed and accepted
  • Title verified and cleared of liens
  • Funds released and transaction completed

Why AAM Trader never holds your funds

Holding client funds requires specific licensing and regulatory compliance. AAM Trader deliberately does not touch transaction money. Instead, we coordinate a handoff to a licensed aviation escrow partner and track the milestones so the process stays transparent for both sides.

Frequently asked questions

Who pays for escrow?
Escrow fees are typically modest relative to the transaction and are commonly split between buyer and seller, though this is negotiable and stated up front before the escrow opens.
What happens if the inspection fails?
Because funds are only released when conditions are met, a failed inspection means the buyer is not obligated to proceed. The parties can renegotiate, or the escrow can be cancelled with funds returned according to the agreed terms.
How do I start an escrow on AAM Trader?
Once you and the other party agree on price through the messaging system, either party can start a secure escrow directly from the accepted offer. From there, our team coordinates the licensed escrow partner and tracks each milestone to closing.

This guide is provided for general informational purposes only and does not constitute legal, financial, or professional advice. Always obtain an independent appraisal and a qualified pre-purchase inspection, and confirm current regulations with the relevant aviation authority before buying, selling, financing, or operating an aircraft.