Boat Ownership Partnership Agreement: What You Need to Know
Investing in a boat can be a great decision, but it can also be quite costly. Not everyone has the financial means to purchase a boat outright. That`s where boat ownership partnership agreements come in.
A boat ownership partnership agreement is a legal contract between two or more people who are interested in purchasing a boat together. This agreement outlines the details of how the boat will be co-owned, including each partner`s responsibilities and how expenses will be shared. Here`s what you need to know about boat ownership partnership agreements.
Types of Partnership Agreements
There are two main types of boat ownership partnership agreements: tenancy in common and joint tenancy. With tenancy in common, each partner owns a percentage of the boat, which can vary based on their investment. Joint tenancy, on the other hand, means that each partner owns an equal share of the boat.
Responsibilities
When drafting a boat ownership partnership agreement, it`s important to specify each partner`s responsibilities. This can include who will be responsible for maintaining the boat, how the boat will be cleaned and stored, and who will be responsible for scheduling repairs and maintenance. These details should be included in the agreement to avoid confusion or conflict down the road.
Expenses
Boat ownership can be expensive, and the partnership agreement should outline how expenses will be shared. This can include the cost of purchasing the boat, maintenance costs, insurance, dock fees, and other expenses that may arise. The agreement should also specify how expenses will be divided if one partner decides to sell their share of the boat.
Dispute Resolution
No one likes to think about disputes, but it`s important to address the possibility in the partnership agreement. This can include how disputes will be resolved, whether through mediation or arbitration, and who will be responsible for paying the fees associated with resolving the dispute.
Conclusion
A boat ownership partnership agreement is an important legal document that outlines the details of how a boat will be co-owned. It`s important to work with an attorney experienced in drafting these agreements to ensure that all parties are protected and that the agreement meets all legal requirements. With a well-drafted partnership agreement in place, co-owning a boat can be a fun and enjoyable experience for all parties involved.