Yacht share agreement

[Rum_Pirate]

Anyone in a yacht share agreement?

Does it work well for you?

What would you change?

Is there a template for drawing up such an agreement between two parties?

What are the (common) pitfalls ?

 

[thinwater]

Yup, be doing it for 4 years. Never thought I would, but it's worked out great.

• Best if parties are not employed full time or retired; that way you don't compete for good days.
• Be clear on the work. In my case, I'm comfortable with doing most of it, so no problems. My partner is good about it, though, and has skills too. But if it ends up being all you, you should be OK with that.
• Don't partner on more boat than you can easily afford on your own. Then no stress. If it is to buy more boat that you can afford... even friends can get weird with big money on the line. I partnered on a boat that cost 4x less than my last personal boat, so no worries.

We're getting along great and talking about extending another 5 years. We were strangers, but now sail together more than 50% of the time, because we get along so well. But that is a lucky bonus.

 

[Tranona]

They work for some people. There is a good section on the RYA site on shared ownership together with principles for an agreement. however the one thing that underpins such arrangements unless they are in the form of a managed syndicate is compatibility of sharers and trust between them.

I was just about to reply to your other thread to say that the basis for this share is not good. The boat is currently close to worthless to the owner as he is not using it, clocking up bills and will find it impossible to sell in its current condition. Taking it on in the way suggested leaves you open to escalating costs - your $12k budget will double by the time you finish, never mind your time and the finished boat will be worth less than you have spent on it - but you will only own 50%.

Offer him £5k for the boat with a promise that he can use it when he wants and if it is sold you will give him 50% of the amount over an agreed amount that covers your cost of making it usable again.

Or better still, run away and find a boat you can use.

 

[davidej]

I have co- owned my boat for nearly 20 years. No agreement- just good mates.

And as neither of our wives are over keen on sailing, we have nearly always got each other as a crew.

 

[DavidonMersea]

I have co- owned my boat for nearly 20 years. No agreement- just good mates.

And as neither of our wives are over keen on sailing, we have nearly always got each other as a crew.

A Warning. Whilst you might have agreed verbally, it is important to put that agreement inn writing, not because you don't trust each other, but to make sure you have both agreed to what you think you have agreed.

This happened with a friend of mine. He let his house to his friend, and both thought the other were going to pay the rates, and along and bitter argument ensued when the rates demand arrived

 

[Povremeni pomorac]

Sounds ideal!

 

[Povremeni pomorac]

A Warning. Whilst you might have agreed verbally, it is important to put that agreement inn writing, not because you don't trust each other, but to make sure you have both agreed to what you think you have agreed.

This happened with a friend of mine. He let his house to his friend, and both thought the other were going to pay the rates, and along and bitter argument ensued when the rates demand arrived

Sound advice, though after 20 years, in this exceptional case, not needed. (Probably)

 

[tudorsailor]

We sold a 1/3 share. Wife and I have the 2/3. Works well for us as we can dovetail trips to extend our cruising. So we can get from Ionian to Venice in alternating legs.
I modified the Yacht Fractions share agreement to include a line about ownership in the event of death!! I thought that it should be clear.
TS