This agreement covers any situation where two people or
sets of people share ownership and use of any kind of boat
About this document
This agreement is suitable for any arrangement where two sets of people share ownership and use of any type of boat for leisure. The document has been drawn so for a situation where only one owner occupies the boat at any time. However, there is nothing to prevent the second owner sharing use of the boat.
The best structure for you: Before you purchase this document, consider suitable structures for your sharing proposal. We believe there are two best ways to share ownership of a boat. If you are looking at a commercial arrangement or one for more than ten people, hold the boat in a limited company, then buy and sell shares in it. This way, ownership of the property itself never changes. No stamp duty is paid once it is bought as the right of occupation can be treated as a licence.
Running a company is not for everyone. If you have 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 our other suggestion for boat sharing – a fractional ownership agreement such as this.
We offer two versions of this document. One is for a situation where only two parties share - two individuals or two families, or whatever. The other is designed for more than two parties.
Even if ownership of your boat is registered, the organisation 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. These Net Lawman agreements specifically record the shares. They also record shares which may be owned by someone who is not a registered owner (this is called a beneficial interest). Of course the document also provides for more practical matters to – such as who has the boat when, how it will be transported, security, mooring, repairs and more.
Application
and features
Comprehensive fractional ownership document for any type of boat or yacht
Sensible and functional provisions for shared ownership and use
Drawn in plain English
Explanatory notes to guide you
Contents
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
Undertakings by the parties
Alternative exit strategies
Effect of termination
What if someone wants to sell his share or sell the Boat
Other legal provisions
Word
Count (approximate):
Document: 3300
words
Explanatory notes:
650
words
Draftsman
This document is drawn and maintained by Net Lawman. It is real law in plain English.
