Selling a shared boat, please advise

[horizon]

I have a quarter share, worth about £10 000, which I have been trying to sell for the last two years. I really need to recover my money and the only way I can see of doing that, is for the whole boat to be sold. Unfortunatly, the other owners are blocking this. Can anyone tell me what the legal position would be, please?

<hr width=100% size=1>

 

[Talbot]

What was written into the original contract between you? Have you asked if they would like to buy out your share?

<hr width=100% size=1>

 

[horizon]

Unfortunatly, our syndicate rules don't cover this!!! My share has been on the market but there is no interest from the other three, even though I would let my share go for a very good price.

<hr width=100% size=1>

 

[domlee]

Think of your own priorties first. Look for legal precidents in both the marine and property markets. It seems to me there are three ways this issue can be resolved. The first option would seem to be to attempt to sell your share - which you have attenpted but to no avail, the second option is to spread the cost over the three other members of the syndicate - which they do not seem to be interested even at a preferential discount (this would seem very short-sighted given the third option), the third option is to liquidate the asset and share the remaining dividend, bearing in mind the legal costs (which may exceed the cost of the boat!) shall reduce any monies due. You all may even have to pay out legal expenses. A three partner syndicate, at a relatively nominal cost to the others, may be the way to go. Either way, it seems you may have to take a hit on the 10k 'invested'. Best of luck.

<hr width=100% size=1>

 

[whisper]

Surely his problem is that the other 3 members won't agree with any of your options. I'm afraid that all I can suggest is that he gets some legal advice - is there a contract, is it reasonable etc etc.
I share a boat and we have a very simple & short agreement. One of the clauses is that if either of us wants to withdraw then the share is at first offered to the other member. If he does not want it and another partner acceptable to the other is not forthcoming then the boat has to be sold. Pretty essential really even though the two of us are very good friends (at present !!!!).

<hr width=100% size=1>

 

[Joe_Cole]

Have you spoken to Yacht Fractions? I found them to be helpful when I was thinking about sharing. They may even be able to help you sell your share. They advertise in PBO etc and I think they're on the web.

Joe

<hr width=100% size=1>

 

[tonyc]

Whisper's advice is very sound - do not enter into an agreement without a clear way of getting out of it. My partnership agreement has a similar clause. But as you are in it without such a clause I fear you are in a weak position and suggest you get legal advice. Therer may be an 'implied' agreement to terminate or alter the agreement. If the other 3 will not negotiate with you then you need some way of putting pressure on them or making them an offer they find attractive.

<hr width=100% size=1>

 

[brianhumber]

Also had a yacht shared with this type of clause. The other partner had defined time span to buy share or not. If not boat was sold on open market.

<hr width=100% size=1>

 

[andrewbarker]

In the normal course of events, in the absence of a formal separate agreement, I think the terms of the Partnership Act 1895 apply. In other words, if you pull out, the partnership folds and you can insist on a sell up. However I'm not sure what the business arrangements are in your partnership. See a brief.

<hr width=100% size=1>