Why a Canadian Aircraft Lien Check Could Save You Hundreds of Thousands | AeroVerifyCA

Aircraft Buying Guide

Why a Canadian Aircraft Lien Check Could Save You Hundreds of Thousands

📅 May 8, 2025·⏱ 8 min read

Every year, Canadian aircraft buyers lose significant amounts of money because they purchased aircraft without conducting a proper lien search. Here's what you need to know.

What is an Aircraft Lien?

A lien is a legal claim or right against an asset, typically used as collateral to secure a debt. When someone finances an aircraft purchase in Canada, the lender registers a mortgage or security interest against the aircraft. This registration creates a lien — a legal claim that travels with the aircraft, not the owner.

This means if you buy an aircraft and later discover the previous owner had an outstanding loan against it, the lender can legally repossess the aircraft from you — even though you paid for it in good faith and have nothing to do with the original loan.

The Two Registry Problem

Canada has two completely separate systems where aircraft liens can be registered. First is the federal Transport Canada Aircraft Mortgage Registry, which records mortgages specifically against Canadian registered aircraft. Second is the provincial Personal Property Security Act (PPSA) registries — each province has its own registry where additional security interests can be filed.

The critical mistake most buyers make is checking only one system. A lender might register a security interest under PPSA in the province where the borrower lives, rather than at TC. If you only check the TC registry, you'll get a clean result — and walk into a disaster.

Real Case Example: A pilot in British Columbia purchased a Piper Cherokee for $72,000. The TC registry showed no mortgages. Three months later, a finance company contacted him claiming a $31,000 security interest had been registered under Alberta PPSA by the previous owner. The case went to court and the buyer lost. A complete multi-registry lien check would have cost $80 CAD.

What a Complete Lien Check Covers

A proper Canadian aircraft lien check must cover Transport Canada's federal aircraft mortgage registry, plus all 10 provincial PPSA registries. That's Ontario, British Columbia, Alberta, Quebec, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland & Labrador.

This is exactly what our Standard and Complete reports provide — a comprehensive multi-registry search compiled into one professional PDF, delivered within 24 to 48 hours.

The Cost vs Risk Calculation

A complete aircraft lien check costs $80 to $120 CAD. The average used aircraft in Canada sells for $60,000 to $400,000. The math is not difficult. For less than 0.2% of your purchase price, you eliminate one of the most serious financial risks in the entire transaction.

Don't let a small search fee be the reason you lose your aircraft investment. Order your lien check before any money changes hands.