The Closing Call is a conference call between the Buyer and Seller to authorize the closing of the aircraft transaction. Usually the Buyer, Seller, Escrow Agent, and brokers are on the phone, but lenders can often be on them also.
Basically, the call is the Buyer saying to the Escrow Agent, “Yes, the Seller has complied with their obligations in the contract and I authorize money to be wired out for the purchase.” And the Seller says to the Escrow Agent in response, “Yes, the Buyer has completed all their obligations in the contract and I authorize you to give title of the aircraft to them.” Some Closing Calls we have been on have lasted a minute and a half, and others have lasted an hour. The reason for the longer calls is that some Sellers want to wait on the phone for a SWIFT confirmation of the Buyer’s funds being sent. However this can, and is normally, sent through an email after the close of the call. There really is not a need to sit on the phone for the SWIFT confirmation to be issued.
De-registration can also happen at this time. It is very common to have listed in your Escrow Agreement that the Escrow Agent will file the application for deregistration at the time of closing. Sometimes people do not want to have the Closing Call until there is proof of de-registration, but we rarely recommend this as it leaves a naked exposure for the Seller. We highly recommend, if possible, the filing of the application for de-registration to occur at closing by the Escrow Agent.
Prior to the call, contractual conditions should be fulfilled. The aircraft should be positioned where it needs to be for closing and in the condition agreed by the contract. All appropriate documents should be with the Escrow Agent which will include the Delivery Receipt, Bill of Sale (also called the Title), Mortgage Releases (if any) and De-Registration Application. The Closing Call is then scheduled once everything is in place and is, in essence, just the Buyer and Seller saying “Yes”.
The Closing Call is, in many transactions, redundant. We’ve been involved with numerous transactions where the Buyer and Seller have emailed the Escrow Agent their authorization to close. Once the Escrow Agent receives both sides’ authorization, they send an email that closing has happened and the transaction is complete without a formal “closing call” actually occuring.
The Closing Call is basically the last step of the transaction. There are a few ends to tie up after the call, (such as changing radio licenses and transferring subscriptions, engine programs and other items) but really this signals the end of the transaction.
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