Yachtshare Agreement Template

[Delphin_Rival36]

I am planning to share ownership of my Rival36 with friends. Since we have good mutual trust, we don't feel the need for a legally drawn up agreement, as its an unnecessary cost. However, we would like to have an agreement in place, so that co-owners rights are protected in case of unexpected circumstances. Does anyone have a agreement template that I could use for this purpose or know where I can get one. I know that RYA offer this, but I am not currently a member. Thanks.

 

[Tranona]

There is not an agreement as such from the RYA but a lost of things that you might want to consider including. Unlike a sales and purchase agreement, share agreements re very much bespoke.

 

[Delphin_Rival36]

thanks

 

[tudorsailor]

Make sure you add something into the agreement about what happens to ownership in the event of death of either partner

TS

 

[tudorsailor]

Not if the deceased only owns 1/3 of the yacht!

 

[Crispan]

There is not an agreement as such from the RYA but a lost of things that you might want to consider including. Unlike a sales and purchase agreement, share agreements re very much bespoke.

So true, such agreements are wide and varied according to the particular circumstances of the individuals concerned. So just write-up a paragraph or two on whatever all the parties agree-to, and all sign it.

Of far more importance is the dividing of shares and the issuing the BofS docs to each of the shared owners. The current title owner can divide and issue BofS docs at zero cost. Just print and sign them (with the relevant witnesses) making it clear how many shares each party owns.

 

[ylop]

So true, such agreements are wide and varied according to the particular circumstances of the individuals concerned. So just write-up a paragraph or two on whatever all the parties agree-to, and all sign it.

Never had a yacht share, but I've dealt with share agreements in other circumstances. If it only runs to a couple of paras I don't think you are being detailed enough. The point on the agreement is two fold (1) to make sure you are all on the same page at day 1 and have discussed/resolved discrepancies before you part with cash (2) to make sure that when the arrangement comes to an end that it is clear what the understanding is between everyone about how that will be managed. The second seems more important, but getting the first right helps mean the second is longer in the future. e.g. arrangements for where the boat will be kept, who decides major upgrades, how you resolve problems like one party not paying their share on time or not leaving the boat clean etc - are the sort of things that make people fall out. I don't think for a group of friends it needs to be drafted by a lawyer but it should all be written down. Google will find you dozens of articles discussing the sort of issues to consider.