PILOT-Counsel: Is Your Aircraft Properly Registered?

November 2022 editorial comment and update:  This article first appeared in the March 2006 issue of AOPA PILOT magazine.  A notable change to the aircraft registration process since then occurred on October 1, 2010 when the FAA adopted a new rule for a three-year aircraft registration expiration and renewal cycle.  Previously, registration certificates had no specific duration, rather, they remained valid indefinitely, or until the aircraft was sold, destroyed, or scrapped, or the owner died.  In the several years that followed this rule change, there was a good deal of confusion and turmoil due to the staggered re-registration process--more than a few owners inadvertently let their registrations expire.  As of this writing, some twelve plus years later, the renewal term will be extended.  Effective January 23, 2023 aircraft registration duration will change to a seven-year cycle.  This change will apply to both new registrations, as well as registration certificates valid on the change date.  In other words, after January 23, 2023, currently valid registrations will remain valid for another four years from the original issuance date.  This is welcome news for aircraft owners. 
 
Addressing a peripheral registration-related topic, over these many years we’ve seen an uptick in the use of LLC’s (Limited Liability Companies) as a legal ownership entity of choice for aircraft purchasers.  Many current or prospective owners seem to think that owning an airplane in an LLC provides absolute protection against all manner of liability.  It does not.  An LLC offers limited liability, that is, its members are generally not personally liable for the debts, obligations and liabilities of the entity itself.  However, a member piloting an LLC-owned aircraft involved in an accident resulting in a claim of pilot negligence or similar may be held personally liable. Aircraft owners should consult with a knowledgeable aviation attorney to evaluate the best liability protection strategies for their particular circumstances, which might include using an LLC.  A common recommendation from legal practitioners and insurance professionals alike is to buy as much liability insurance as you can get or afford. 
​   
A full examination of the pro’s and con’s of using LLC’s for aircraft ownership and registration isn’t feasible in this forum.  We will, however, leave you with this tidbit which ties together LLC ownership with the topic of proper aircraft registration: if an LLC that holds ownership of an aircraft, expires (renewal criteria is state specific) or such LLC is otherwise deemed invalid for some reason or another, the aircraft registration certificate is likewise invalid.  As John Yodice relates in his article, “Don’t get caught unaware.”

​It’s the law, and we pilots and aircraft owners need to know more about it.  In the past, inadvertent technical violations of the aircraft registration law were handled more gently.  Now we have been put on notice that that’s changing--all a part of the continuing aftermath of the 9/11 terrorist attacks.  Right now we don’t know all of the ramifications of the change, but we do know that the law will be more strictly enforced.  We need to be more diligent to assure that the aircraft that we fly are properly registered.
 
The law, with which we are all generally familiar, is that an aircraft may not be operated unless it is properly registered (which is not a simple concept), and the registration certificate (or other authorizing documentation) is onboard the aircraft while it is being operated.  For you fellow “hangar-flying lawyers” who prefer to see the specific wording of the applicable regulation, FAR 91.203(a)(2) provides that “no person may operate a civil aircraft unless it has within it ... an effective U.S. registration certificate issued to its owner or, for [a pending application for registration] operation within the United States, the second duplicate copy (pink) of the Aircraft Registration Application as provided for in Section 47.31(b), or [for foreign aircraft] a registration certificate issued under the laws of a foreign country.”  In addition to this regulatory requirement, and what is not commonly understood, is that operating an improperly registered aircraft is also a federal crime if it is done “knowingly and willfully.”   (See “Pilot Counsel: Aircraft Registration,” March 2005 Pilot).
 
The regulations also provide that a registration certificate has no specified duration.  It is valid until suspended or revoked by the FAA or until the aircraft is sold, destroyed or scrapped.  The certificate holder may also voluntarily cancel it.  If the certificate holder dies, the certificate is still effective for 30 days after the date of death. 
 
What is troubling is that except for the drug smuggling cases, virtually all of the violations we have seen have been technical and inadvertent and eventually cured.  For example, we have sometimes seen the operation of an aircraft with a registration certificate in the name of a former owner, sometimes for years.  Eventually, the aircraft have become properly registered without a problem.  A related typical inadvertent violation has been the failure to return the original registration certificate to the FAA once the aircraft has been sold or the ownership transferred.  Current regulations require that when an aircraft is sold, the seller must notify the FAA of the sale and the certificate of registration must be returned to the FAA. Another violation that we see, though sometimes not inadvertent, is the operation of an aircraft outside the United States on the “pink” copy of the application for registration (which is good temporary authorization, but only for operation within the United States).  Another one to watch out for is a US registration that does not meet the United  

​States citizenship requirement for registration, a very technical requirement. There are more.  FAR 47.41(a) enumerates the circumstances under which a certificate of registration becomes ineffective. As we will see, these types of violations will now be treated more seriously. 
 
Effective last month, the Federal Aviation Administration, in concert with the Transportation Security Administration, made an announcement that it will “revitalize and refocus its airspace monitoring capabilities” to ensure that only properly registered aircraft operate in the airspace over the United States.  Clearly, the FAA intends to prevent improperly registered aircraft from flying.  How this will be implemented remains to be seen.  The announcement also says that with respect to registrations that are noted on the FAA records as “in question” (a procedure that the FAA started a few years ago) notifications are going out to operators of aircraft that these aircraft “may be denied access” to the national airspace system.  We get a clue that in addition to denial of access to the airspace, individual enforcement actions will also be used.  The FAA/TSA notification says that notices of deficiency will be sent out, and that “a pilot deviation will be filed on the operator” whether he/she is the owner of the aircraft or not. All of which tells us that it is now more important than ever for us to assure that the aircraft we fly are properly registered.
 
There is another often-inadvertently-violated regulation that needs to be noted.  FAR 47.45 requires that the holder of an aircraft registration certificate notify the FAA of a change of address within 30 days.  If the FAA is notified of a change of address, a new certificate of registration will be issued, without charge.  Failure to notify of a change of address within that time doesn’t make the registration ineffective, but it does cause other problems and it is a regulatory violation.  Happily, many of the old addresses are updated through the triennial aircraft registration report that is sent to the owners of record of aircraft that have not had Registry activity within the past three years.
 
Don’t get caught unaware.  The mere fact that the aircraft contains within it a registration certificate that appears valid, doesn’t necessarily mean that it is.  For example, if the name that appears on the registration certificate is not the name of the current owner, that should be a red flag.  If you have doubt, check.  There is an easy way, though not foolproof, to help to determine if an aircraft is properly registered or if the registration is “in question?”  The FAA Aircraft Registry may be searched and updated electronically.  Visit the website (http://registry.faa.gov/aircraftinquiry) for more information.  

                                   Copyright © Yodice Associates 2006.  All rights reserved.       
 
​
John Yodice is the Senior Partner of the Law Offices of Yodice Associates, a law firm experienced in aviation legal matters involving DOT, FAA and TSA certification and compliance, corporate governance, aircraft transactions and more. www.yodice.com