D2 Boat Share – Buy Shared Use Contract (Small 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 smaller boat, such as a day boat, dinghy, rib or small speed boat. For the purpose of this agreement, a ‘small boat’ is one without living accommodation on board. This agreement is specific to smaller boats and does not deal with issues that are inappropriate when sharing a smaller boat, but which might be useful when sharing a larger boat. Although the initial purchase price can be quite high for a speed boat or racing dinghy, the cost is still likely to be less that for a larger boat, and the running costs are usually considerably lower, as mooring fees are either not required or are not so expensive. Therefore, less detailed provisions are required for splitting costs between the sharers.
A group that wishes to share a larger boat should see the large 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 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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