CO-OWNERSHIP OF A BOAT/AIRCRAFT AGREEMENT
How you can co-own a plane or boat and draft an appropriate co-ownership agreement.
The dream of buying your own airplane, sailboat or powerboat is something many people share. All to often, however, these properties are either too expensive for a single person to buy, or potential buyers believe they will get more use out of the properties if they come together and purchase them as a team. Whether you and your friends wish to purchase a boat and agree upon the times when you can use it, or you want your own aircraft and want to spread out the expenses of operation, suitable agreements can be reached to make this possible. If co-ownership of a boat or aircraft is something you wish to pursue, you’ll first have to draft the appropriate document. Here is what you need to know:
WHAT IS A CO-OWNERSHIP AGREEMENT?
A Co-Ownership Agreement is simply a written statement describing the terms under which your boat or aircraft will be purchased and used. The agreement states what the responsibilities and privilages of the various co-owners will be. Whether it’s a time-share type agreement for a boat or a list of times when a group of co-owners have the right to use a crop-dusting aircraft, these agreements are written so each co-owner will be clear what they can and cannot do.
HOW MANY PEOPLE CAN ENTER INTO A CO-OWNERSHIP AGREEMENT?
As many as agree to do so. Co-Ownership of a boat or airplane can include multiple parties. It’s quite common for groups of families or small business to agree to share rights to these properties, and apportion the share of costs or expenses appropriately. Of course, there will be practical limitations to any use, but as long as everyone agrees to the terms, the co-ownership agreements can include as many people as you wish.
WHAT ABOUT REPAIRS AND MAINTENANCE?
The co-owners can decide amongst themselves who is responsible for repairs and maintenance. Whether one person supervises all required maintenance and submits a bill to the rest, or if each co-owner agrees to take turns, however the parties wish to allocate responsibility to any area of the ownership details is up to them.
WHAT DO I NEED TO INCLUDE IN MY CO-OWNERSHIP AGREEMENT?
Most often, Co-Ownership Agreements will include conditions that cover all contingencies. The method of funding, cost allocation, transfer of ownership interest and terms of use are all needed to make the agreement complete. These documents should be clear and concise, yet expansive enough to include all information required to make it clear to all parties involved what their responsibilities and privilages are.
The choice to enter into a Co-Ownership Agreement for a boat or aircraft is a common decision many people make when they wish to purchase these kinds of properties. The most important function of these documents is to make it clear to each owner or potential co-owner what they can and cannot do with their share of the property. A well drafted Co-Ownership Agreement will allow for everyone to enjoy their new purchase, while a poorly drafter document, or even worse, no agreement at all, will lead to endless problems.