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:-
It is a legal document which sets out the terms under which your boat or aircraft will be purchased and owned.
It states what each parties ownership percentage is, the costs that each party is responsible for, other responsibilities of the parties with regards to maintenance and what the privileges 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, they are written so each co-owner will be clear about what they can and cannot do.
As many as you agree can take part and can include multiple parties. It’s quite common for groups of families or small business to agree to share rights to these assets, 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, it can include as many people as you wish.
The co-owners can decide who is responsible for repairs and maintenance. You may agree for one person to supervise all required maintenance and submit a bill to the rest, or for each co-owner to take turns – however the parties wish to allocate responsibility for maintenance of the ownership details is up to them.
It should be clear and concise, yet expansive enough to include all information required to make it clear to the parties what their responsibilities and privileges are.
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 agreement will allow for everyone to enjoy their new purchase, while a poorly drafted document, or even worse, no agreement at all, may lead to problems.To download your own Co-Ownership Agreement Kit
If you need a real estate co-ownership agreement, view the Tenant’s In Common Agreement here.