Are you considering co-owning a boat with someone else? If so, it`s important to have a co-ownership agreement in place. A co-ownership agreement outlines the rights and responsibilities of each owner, as well as how the boat will be used and how expenses will be shared.
Luckily, drafting a simple boat co-ownership agreement doesn`t have to be complicated. Here is a template to get you started.
1. Ownership Distribution
In this section, you`ll want to outline how ownership of the boat will be divided among the co-owners. For example, will each owner have a 50% stake in the boat, or will it be divided in another way? This section should also include how ownership can be transferred or sold, and any procedures for doing so.
2. Use of the Boat
This section should outline how the boat will be used and when each co-owner will have access to it. Some common rules to consider include:
– Scheduling: How will the boat`s use be scheduled among the co-owners?
– Maintenance: Who will be responsible for maintaining the boat and ensuring it`s in good condition?
– Repairs: How will repairs be handled if something goes wrong with the boat?
– Expenses: How will expenses related to the boat be shared among the co-owners?
Speaking of expenses, this section should outline how costs related to the boat will be shared among the co-owners. Some common expenses to consider may include:
– Mooring fees
– Insurance premiums
– Fuel costs
– Maintenance and repairs
Be sure to include details about how expenses will be divided, such as a percentage split or a set dollar amount.
4. Dispute Resolution
In the event that a dispute arises between co-owners, it`s important to have a plan in place for resolving it. This section should outline the steps that will be taken to resolve any disputes, such as mediation or arbitration.
5. Termination of the Agreement
Finally, this section should outline how the co-ownership agreement can be terminated. For example, it may be terminated if one co-owner wants to sell their share, if the boat is sold, or if the co-owners mutually agree to end the arrangement.
By using this simple boat co-ownership agreement template as a starting point, you can help ensure that you and your co-owner(s) have a clear understanding of your rights and responsibilities as boat owners. Just be sure to have a lawyer review the agreement before you sign anything, to ensure that it will hold up in court if any issues arise. Happy boating!