- Length:13 pages (3740 words)
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About this document
This agreement covers any situation where two or more people or sets of people share ownership and use of a boat for leisure. The agreement has been drawn to as to regulate occupation where only one owner occupies the boat at one time. However, there is nothing to prevent a second owner sharing time with another owner.
First, you should consider what is the most suitable structure for your sharing proposal. If you are looking at a commercial arrangement or one for more than ten people, then it would be better to hold the property in a limited company and buy and sell shares in it. Then ownership of the property itself never changes.
However, running a company does cost money, so between 2 and 10 owners it is a matter of preference as to whether you want the formality, expense and greater certainty of a company structure and shareholders agreement or the lower cost and comparative informality of an agreement like one of these.
Even if ownership of your boat is registered with some organisation, the particulars will not record the shares in which the boat is held. So If you own 60% and I own 40% we have to record that in some other document. If we do not do so, “the Law” will assume we own in the shares in which we contributed to the purchase price. This may or may not be the same thing. This Net Lawman agreement specifically records the shares. It also records shares which may be owned by someone who is not a registered owner. Such an interest is called a beneficial interest.
Application and features
- Comprehensive fractional ownership document for any type of boat or yacht;
- Sensible and practical provisions for shared ownership;
- Written in plain English;
- Explanatory notes to guide you.
- Terms of beneficial interest - beneficial trusts provision;
- Price and payment for the Boat;
- How many people allowed into occupation at one time and who they may be;
- Who and how will manage payment of expenses;
- Management of the Boat;
- Management structure ordered by annual meetings of the owners, possibility of proxy voting, and more;
- Undertakings by the parties;
- Alternative exit strategies, including for a share to be sold to a third party, after offering it to all other owners;
- Effect of termination;
- What if someone wants to sell his share or sell the Boat;
- Other legal provisions.