"There is an infinite difference between a little wrong and just right, between fairly good and the best, between mediocrity and superiority…" - O.S. Marden

Location

The best place for a prepurchase inspection is a shop approved for repairs by the manufacturer of the make of plane being bought. They will know that make and model well, including areas that might be overlooked by a general shop. They will care about their national reputation and the integrity of their service. The will also have the financial wherewithal to stand behind their work should something be missed. One caution: they will be very picky, so neither the buyer or the seller should get very excited to see quite a few squawks even on a well maintained plane. Expect 60-70 squawks! However, only a handful of those will be of real concern typically.

The next best place is at a shop with an A&P Mechanic, who has been schooled in that make & model, has experience on that particular make & model, and whom you know and trust.

The worst type of inspection is the "fresh annual" just done by the seller's mechanic. Even, if the inspection was done by the best shop in the world, the buyer will still want his shop to at least give a second opinion. Another set of eyes keeps everyone honest and will always find something that was missed.

Type
The best inspection is an annual or the next big phase/calendar inspection that is coming due. Due to liability issues many shops refuse to do limited "prebuy" inspections. Now, they may only do full regularly scheduled inspections. In the short run, as well as, the long run it is best for all concerned. As a result, the buyer will have done his proper "due diligence" and the seller will have the peace of mind knowing that when the plane passes to the buyer, so does his liability.

Since the responsibility is on the shop to perform to the highest standards, the buyer will want the shop acting in his best interest. As a result, the buyer wants to be the one paying for the inspection. However, it is the seller whose responsibility it is to pay for repairs and other discrepancies that make the plane not airworthy.

Click here for document on Handling Discrepancies developed from the inspection, Airworthiness Directives, Mandatory Service Bulletins, recommended Service Bulletins, developing a "Buyer's List" of items and a "Seller's List" of items, deciding on who pays for what, and the final agreement and acceptance before closing.

Acceptance
It may be helpful to know that 99% of the time a "win-win" agreement results, assuming that the above steps have been followed thus far! At this point, the buyer officially accepts the results of the prepurchase inspection and the seller now has a non-refundable deposit. A memo to this effect signed by both parties should be forwarded to the escrow agent. Appropriate corrective actions can now begin. Closing is the next step.