If the aircraft you are buying or selling falls into one of the categories listed below, yes. If not, then you have nothing to worry about (unless you foresee yourself buying or selling such an asset):

• Airplanes with 8 or more people, including crew; or goods in excess of 2,750 kg (6,062 lbs). 
• Helicopters with 5 or more people, including crew; or goods in excess of 450 kg (992 lbs). 
• Engines 550 hp or 1750 lbs thrust.

In very simple terms, the Cape Town Convention on International Interests in Mobile Equipment (“Cape Town Treaty”) was pushed by the airline industry for airline customers, particularly those in second and third world countries, where there are conflicting laws about ownership and repossession. It is designed to provide greater security to international transactions by superseding the conflicting laws of those countries that sign the treaty. It establishes comprehensive laws in each country dealing with buying, selling, leasing, and financing aircraft and engines, including issues related to default, remedies, insolvency, title, deregistration, and the perfection and filing of liens. This, in theory, is supposed to create a more favorable financial environment in which OEM’s can sell their wares and financial organizations lend money.¹

Why this new level of bureaucracy applies to many GA aircraft is beyond the scope of this article. Despite the efforts of some legislators to raise the threshold of applicability, the current rule stands and lack of compliance may jeopardize your ability to “perfect” the title. By not being internationally recorded or registered your ownership may not be established against all others. You still need to register with the FAA but, technically speaking, any earlier filings on the international registry may take precedence.

So, how much does this cost? Each user will need to establish an account with the International Registry at a cost of $200 for one year or $500 for five years. Depending on the asset being registered, additional charges varying from $50 to $150 will apply. At this point you may wish to turn over the actual registration process to a qualified aircraft title agency. Each agency has established it’s own fees but most are very reasonable considering their level of experience and amount of work they do. For example, King Aircraft Title, Inc. (800-688-1832) in Oklahoma City charges just $100 to process your registry request.

Again, if your aircraft does not fall within the parameters described above, your aircraft registration process remains unchanged.

Additional resources for the Cape Town Treaty:

• Law Journal Newsletter
• GKG Law

¹ Aviation International News, April 2006