D1 Boat Share – Buy Shared Use Contract (Large Boats)
This agreement is suitable for use to set up a boat share scheme, club or syndicate where two or more people will share ownership (fractional ownership) in a boat. This particular agreement is designed for use in groups that share a larger boat, such as a yacht, motor boat or narrow boat. The criterion for deciding whether a boat is a ‘large boat’ for the purpose of this agreement, is whether it has living accommodation on board. This agreement deals with issues that are specific to larger boats by making provision for reserving the boat for longer periods of time than the alternative small boat agreement, and has more detailed provision for splitting the costs of running the boat, as these will inevitably be higher with a larger boat.
A group that wishes to share a smaller boat should see the small boat share agreement.
This agreement is suitable for use where all of the proposed sharers will own a share in the boat, or are planning to each own a share in the boat. To achieve this, the potential sharers could purchase a boat together, or they could buy shares in a boat already owned by one of the sharers.
This agreement is very comprehensive and, amongst other issues, deals with the following:
- The ownership of the boat and any accessories or equipment related to or found on board the boat
- Management of the boat and decision-making
- Costs splitting procedures
- Reservation procedures for the use of the boat
- The allocation of liability between the sharers in the event of damage or accidents
- Prohibitions and requirements regarding the use of the boat
- Procedures for admitting new sharers, and for terminating the agreement, including how to sell a share in the boat
We recognise that the arrangements for issues such as reservations, cost splitting and use prohibitions on use will need to be different for each boat share club depending on the individual circumstances. To allow for such flexibility many parts of the agreement can easily be personalised to meet the needs of a particular sharing group. For example, the agreement provides for all of the running costs of the boat to be split between the sharers. The default position is that the various running costs are split between the owners according to their share in the ownership of the boat, except for fuel which is paid for by each owner depending on how much they have used. It is possible to alter the agreement if required so that costs are divided between the sharers in a different manner.
The agreement comes with extensive Drafting and Guidance Notes which fully explain the operation of the agreement and contain example additional or replacement clauses which may be used to personalise the agreement. The Drafting and Guidance Notes also contain practical tips and useful documents for use within the boat share scheme.
All of the contracts available from this site have been drafted by our own team of lawyers.
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