Late notification of transfer of ownership will result in cancellation of registration
If you become the owner of a registered aircraft and do not apply to be the Registration Holder within 14 days of the transfer of ownership, then CASA MUST cancel the registration as required by the regulations.
How the 14-day period is calculated.
Transfer of Ownership of an Aircraft Registered under CASR 47 ‘Registration of Aircraft & Related Matters'
The regulations stipulate that CASA must be notified of a transfer of ownership of a registered aircraft as soon as practicable, and the new owner must apply to become the Registration Holder within 14 days. Non-compliance will result in the aircraft's registration being cancelled without further notice.
If a registration is cancelled then the Certificate of Airworthiness (CofA) is automatically cancelled and the aircraft cannot be flown.
There are severe penalties for flying an unregistered aircraft.
Former Owner Responsibilities and Action
The former owner is required to provide CASA with a notification that the ownership of an aircraft has changed.
Notification is provided by sending CASA Part 1 of Form 027 ‘Transfer of Ownership, as soon as practicable after the transfer. ‘As soon as practicable' is considered to mean as soon as it is capable of being done after the transfer of ownership, but within the 14 days following the transfer, at the latest.
Part 1 is to be completed by both the former and new owners, but is to be submitted to CASA by the former owner. If CASA does not receive the Part 1 notification then the Aircraft Register Section (ACR) may not become aware that the transfer has occurred. This can result in the ACR being required to cancel the registration if CASA subsequently becomes aware that a transfer of ownership has occurred.
Regulation 47.110(4) states:
As soon as practicable after the transfer, the former owner, or a person acting on behalf of the former owner, must give CASA a transfer notice; and
(b) give the new owner:
(i) a transfer notice; and
(ii) the aircraft's certificate of registration.
The former owner should draw the new owner's attention to the following information contained in this advice.
New Owner Responsibilities and Action
The new owner must apply to become the Registration Holder for the aircraft within 14 days after the transfer of ownership occurred. Application is made by submitting Part 2 of Form 027 to CASA.
If the Part 2 is not received, or is received later than the 14 day limit, then the regulations state that CASA MUST cancel the registration.
Regulation 47.110(5) states:
Within 14 days after the transfer, the new owner must apply to become the registration holder.
Note: If the aircraft's new owner does not apply to be the new registration holder within 14 days after the transfer, CASA must cancel the aircraft's registration: see subregulation 47.130 (5).
Regulation 47.130(5) states:
If, (a) the ownership of an aircraft is transferred; and
(b) the new owner does not make an application that complies with subregulation 47.110 (6) to be the new registration holder within 14 days after the transfer; CASA must cancel the aircraft's registration at the end of that period.
CASA Responsibilities and Action
In order to comply with the regulations CASA has no option other than to cancel a registration if the required application from the new owner is not received within the stipulated 14 days.
If CASA receives notification of a transfer of ownership from a former owner through the receipt of Part 1 of the form, but does not receive Part 2 from the new owner, then the ACR will attempt prior to the expiry of the 14 day deadline, to contact the new owner.
However, if a Part 2 is not received, or is received after the expiry of the 14 day deadline then the registration must be cancelled. In a case where CASA receives no notification or application and subsequently becomes aware that a transfer of ownership has occurred, then the registration must be cancelled.
If a registration is cancelled and the aircraft is subsequently re-registered then a new CofA will need to be issued before the aircraft can be flown. There are fees applicable to applying for registration and for the issue a CofA. Depending on the condition of the aircraft the fees associated with obtaining a new CofA may be considerable.
Calculation of the 14 day period from the date of transfer of ownership
Section 36 (2) of the Acts Interpretation Act 1901 prescribes how the 14-day period in Regulation 47.110 (5) and Regulation 47.130 (5) is to be calculated.
Section 36 (2) (reckoning of time) provides that if "the last day of the period prescribed or allowed ... for the doing of anything falls on a Saturday, on a Sunday or on a day which is a public holiday or a bank holiday in the place in which the thing is to be or may be done, the thing may be done on the first day following which is not a Saturday, a Sunday or a public holiday or a bank holiday in that place".
So, in light of s36 (2) of the Acts Interpretation Act 1901 , for the purposes of:
CASR 47.110 (5), which prescribes a 14-day period within which, after the transfer of ownership, the new owner must apply to become the registration holder; and
CASR 47.130 (5), which stipulates that CASA must cancel the aircraft's registration if the new owner has not applied to become the registration holder within the abovementioned 14-day period,
a Saturday, Sunday, public holiday or bank holiday is counted as part of the 14-day period, but if the last day of that period falls on a Saturday, Sunday, public holiday or bank holiday, then:
under CASR 47.110 (5), if the last day of the 14-day period is a Saturday or Sunday, or a public holiday or a bank holiday, the new owner has until the expiry of the first day following that is not a Saturday, Sunday, public holiday or bank holiday to submit his/her application to become the registration holder; and
similarly, under CASR 47.130 (5), if the last day of the 14-day period is a Saturday or Sunday, or a public holiday or a bank holiday, CASA has until the expiry of the first day following that is not a Saturday, Sunday, public holiday or bank holiday before it is required to cancel the aircraft's registration.