Updated September 02, 2026
Quick answer
The pre-buy is an independent inspection commissioned by the buyer, before closing, to establish what is actually being bought. It is paid up front and not refundable if the deal collapses — which is precisely why it is worth doing. Lenders treat the findings as part of underwriting, and undisclosed damage discovered here usually ends the transaction.
What It Is and What It Is Not
A pre-buy inspection is not an annual inspection and it is not a formality. It is an independent assessment, arranged by the buyer, of the aircraft's actual condition and the completeness of its records.
Two distinctions worth being clear on. It is not the seller's inspection — a report commissioned by the seller answers the seller's question. And it is not a maintenance event: passing a pre-buy does not mean the aircraft is airworthy for the next twelve months, only that it is what it was represented to be.
The scope is negotiable, and it should be set deliberately rather than left to whoever is doing the work.
What It Typically Covers
- Records review — logbooks for airframe, engines and propellers, and whether they are complete
- Airworthiness directive compliance, verified rather than assumed
- Damage history, including repairs that were done properly and repairs that were not
- Corrosion, which on older airframes is often the finding that matters most
- Engine condition — borescope, compression, oil analysis, time against overhaul
- Avionics and equipment against the equipment list
- Life-limited components and time remaining on each
Records completeness is the item buyers under-weight and lenders do not. As covered in equipment appraisal generally, an undocumented history reduces value more reliably than most physical faults.
Who Pays, and What That Means
| Item | Usually borne by | Note |
|---|---|---|
| The inspection itself | Buyer | Payable whether or not the deal proceeds |
| Opening the aircraft for access | Negotiated | Agree in the purchase agreement, not afterwards |
| Correcting airworthiness items | Usually seller | Often a defined category in the contract |
| Discretionary squawks | Usually buyer | Or renegotiated into the price |
| Ferry to the inspection facility | Negotiated | Not trivial on a long positioning flight |
The buyer paying is the point rather than a grievance. An inspection paid for by the person taking the risk is the one whose findings can be trusted.
How Lenders Use the Findings
A lender is not simply waiting for a pass. The report changes the underwriting in three ways.
Value. Findings that reduce what the aircraft is worth reduce the advance, and a buyer who has already agreed a price may need to bring more equity.
Condition of funding. Airworthiness items are commonly required to be rectified before release of funds, which affects the timetable.
Confidence. Undisclosed damage found at pre-buy usually ends the transaction, and not only because of the damage — it calls into question everything else the seller represented, which a lender notices as clearly as a buyer does.
Structuring the Purchase Around It
- Make the offer subject to a satisfactory pre-buy, with your definition of satisfactory written down.
- Use escrow for the deposit, released on agreed conditions rather than on trust.
- Choose the facility yourself, and choose one with experience of the type rather than the nearest shop.
- Agree the squawk categories in advance — which findings the seller fixes, which reduce the price, which you accept.
- Keep the lender informed as it happens. A finding shared early is a conversation; the same finding at closing is a delay.
- Be willing to walk. The inspection fee is the price of finding out, and it is far cheaper than the aircraft it protects you from.
Frequently Asked Questions
What is a pre-buy inspection?
An independent inspection commissioned by the buyer before closing to establish an aircraft's actual condition and the completeness of its records. It is not the annual inspection and it is not the seller's report, both of which answer different questions.
Who pays for the pre-buy?
The buyer, and it is payable whether or not the deal proceeds. That is the point rather than a grievance — an inspection paid for by the party carrying the risk is the one whose findings can be relied on.
What happens if the pre-buy finds problems?
It depends what kind. Airworthiness items are commonly the seller's responsibility and may become a condition of funding; discretionary items are usually the buyer's or get renegotiated into the price. Agree those categories in the purchase agreement before the inspection, not after.
Can a pre-buy finding kill the financing?
Yes. Findings that reduce value reduce the advance, which can leave a buyer needing more equity than planned. Undisclosed damage discovered at pre-buy usually ends the deal outright, because it undermines confidence in everything else that was represented.
Who should do the inspection?
A facility with genuine experience of the type, chosen by you rather than the seller, and ideally not the shop that has been maintaining the aircraft. Independence and type knowledge matter more than proximity.
Sources & Further Reading
- FAA Aircraft Certification — Federal airworthiness and certification requirements - the framework behind logbooks, airworthiness directives and the records a lender expects.
- FAA Handbooks and Manuals — Federal guidance on aircraft operation and maintenance, including the inspection regimes that differ by operating basis.
- FTC Business Credit and Finance Guidance — Guidance on fee disclosure and the warning signs of predatory business credit.
Figures above describe ranges commonly seen across lenders and reflect published guidance as of the date on this page. Confirm current terms with the cited source or your lender before acting.