Invalid Registration due to Bad Faith Transaction

Verified from official sources
14 CFR § 48.120Version 1Effective -Verified 22 August 2026

In plain language

If the drone was transferred to you in a sham transaction just to avoid federal registration laws, the registration is invalid.

Requirement as structured

The registration of a small unmanned aircraft is invalid if the applicant's interest in the aircraft was created by a transaction not entered into in good faith, but rather made to avoid compliance with 49 U.S.C. 44101-44103.

Original regulatory text

The registration of a small unmanned aircraft is invalid if, at the time it is made— ... (d) The interest of the applicant in the aircraft was created by a transaction that was not entered into in good faith, but rather was made to avoid (with or without the owner's knowledge) compliance with 49 U.S.C. 44101-44103.

Applies when

country
United States
operation
Registration and marking of small unmanned aircraft
aircraft type
small unmanned aircraft
regulatory area
registration
aircraft category
small unmanned aircraft (under 55 lb)
regulatory category
General