Builders liability

[jd.henslow]

I have been trying to buy a PtF aircraft from a nice chap who really wants to sell it to me but he owns a lot of property and his legal advisor has got him concerned over his liability as the builder shoud anything happen in the future that could be attributed to him. Despite discussions with Steve Slater on the extreme unlikelyhood with it, having been properly inspected etc and ideas of extra paperwork signed by me declaring my knowledge of it being amateur built and all risks and judgement being on me, he won't sell unless it can be 100% watertight. he is now planning to sell off the engine and whatever he can and destroy the rest.
Does anyone have any ideas of what could be done? Does anyone know of any one off indemnity insurance available for such things?

[Nick Allen]

I've heard of this happening in the US, but not over here. Definitely an unhealthy trend.

Could he slightly disassemble the aircraft (e.g. take the wings and tailplane off), then sell it to you as a kit, thereby transferring any builder's liability to you?

[jd.henslow]

Thanks. I suggested cancelling the permit and selling it as not airworthy but it would never get rid of his name on the permit as the constructor and he wasn't satisfied.
Fortunataly I have just found another one to buy so happy again

[Ian Melville]

I was going to suggest you walked away. I would rather a precident was not set by this practice.

[gregorp]

Having read these posts with interest, is there a form of words one should use on the sales receipt when selling an amateur built aircraft?

[jd.henslow]

Thanks Ian. It was reading some of your previous comments I found on here somewhere together with info from a solicitor, insurance companies and Steve Slater that I decided there wasn't a problem. (sadly the builder didn't agree. I think he had some very special assetts to protect). Air Courtage told me there had only been 2 cases of someone trying to sue a builder and both had failed.

[Steve Slater]

We've taken some fairly high level guidance and been advised that as an Association we should not attempt to create any form of pro-forma for those buying or selling aircraft. We've looked at documents that AOPA and EAA have produced in the USA and while wordy, they would achieve little in mitigating a risk of a speculative action, although it would likely be doomed to fail.

Unofficially and informally, I have been advised that a vendor should “make absolutely sure and record in writing that the buyer understands that it is an amateur built aircraft with all the uncertainties that might entail. It comes with absolutely no promises, so the buyer must rely solely on his own and his professionally qualified advisers' examinations and testing of the aircraft.”

I've also been advice that “The vendor should sell only if the purchaser agrees to buy the aircraft solely as seen and inspected by the purchaser and any expert adviser in full knowledge that it has been amateur built and maintained, and is subject to no representation, condition or warranty, express or implied, as to its condition or fitness for purpose.”

Note. These are my personal comments, not the LAA's.