Boat Co-Ownership Agreement form?

[hostage]

Re: Boat Co-Ownership Agreement form?

There are some companies that do these sort of things: http://www.fleetboatclub.com/membership/

They are in my area, you might be able to find an agreement or some good information off a similar site.

Good luck, I wouldn't be able to do it, I am to OCD about my boat. Though if it works, could save you a lot of money.

 

[oldjeep]

Re: Boat Co-Ownership Agreement form?

I have checked insurance and it is surprisingly easy to get co-owner insurance. That was actually one of the standard questions from Progressive (online) and there is a surcharge for it, but no big deal. For those curious, $60/month.

$60 a month - based on 12 months? If so I would shop around a bit - that is crazy expensive for a 16K boat unless you are carrying millions in liability coverage. For comparison I have a 15K replacement policy with 300K liability for $169 a year through state farm.

 

[spdracr39]

Re: Boat Co-Ownership Agreement form?

I agree on the insurance thing my policy is a 20k agreed value replacement policy for 189.00 per year through nationwide.

Back to the original question. Can you see the complexity of this. The only thing I don't see addressed is what happens when one party doesn't wash the boat of fill it with fuel? Or what happens when the motor is knocking and "it wasn't doing that last week you must have over reved it". One of you buy the boat and maintain it. Let the other person pay you each time they use it. Let them pay for damage and the first time they don't fess up or pay up stop letting them use it. All the paperwork you will need to keep everything legal will zap all the enjoyment out of ownership. Remember this is a recreational hobby not a business.

 

[BonairII]

Re: Boat Co-Ownership Agreement form?

Good luck with the whole "co-owner" thing. It sounds like a HUUUUGE pain the butt to me.

Too many things can/will go wrong.

The boat is only $16k, while that isn't chump change....it isn't an enormous amount of money either. The parties involved are better off just buying(financing) their own individual boats.

Boating is supposed to be fun.....not a huge legal entanglement between friends. People(and their needs) change all the time. What happens when one of the co-owner's decides that he/she no longer likes boating OR has to relocate because of their job? If one party becomes gravely ill or no longer has money to pay their share...what happens then?

While a contract may legally require a co-owner to pay for any damages he/she causes....it doesn't mean that you'll actually receive that money easily/quickly. If the so-called "guilty party" doesn't agree that he/she is actually in breach of said contract they can dispute the facts in court.

Are you prepared financially/emotionally to litigate a dispute in court over a $16k boat?

 

[rivermouse]

Re: Boat Co-Ownership Agreement form?

What would happen if in 3 years when the boat is only worth about 6 k the engine blows up and it will take 7 k to repair it?Do all of the owners agree on knowing when NOT to pay out the kazooo for repairs?...

 

[Home Cookin']

Re: Boat Co-Ownership Agreement form?

the questions the last two posts raise are already discussed above, but the important point is to think about them, and agree in advance how to handle them. The problems come when they haven't been considered in advance, and when they present themselves, someone's already mad.

The most important part is to pick the right friends. Certain people will make bad co-owners: the anal perfectionist, the slob, the incompetent, the angry litigious sort, the in flexible and unforgiving, as well as the financially unable or unwilling. And that includes you.

The second is to pick the right boat. A older, sturdy boat made and used for recreation, not show, will work way better than one with fragile interiors, no usable rub rails, and lots of accessories. For example, if you have a boat that doesn't need to be covered, you never have to worry about whether it was covered correctly. Something you clean with a hose. KISS.

 

[BonairII]

Re: Boat Co-Ownership Agreement form?

t
The most important part is to pick the right friends. Certain people will make bad co-owners: the anal perfectionist, the slob, the incompetent, the angry litigious sort, the in flexible and unforgiving, as well as the financially unable or unwilling. And that includes you

That covers about 99% of the population. ^^^^^^^^^

Further proof that making the "co-ownership" thing a success.....is a huge longshot. The risks far outweigh the benefits IMO.


Way too many variables that can(and will) up that will put a huge strain on the co-owners both financially/emotionally.

I'm curious as to WHY the OP is entering into this arrangement. Is owning a boat outright too much financial strain on the involved parties?

Co-owning a boat is going to be a LOT more trouble/hassle than it's worth IMO. They are going to constantly have to "schedule" times when they want to go out on the boat, make decisions on what(if any) items can be added to the boat, who is allowed to operate the boat. The list is endless......

There are enough members here that struggle with their own spouses on boat decisions, let alone dealing with a friend.

Unless the OP has literally found a person that is an EXACT match in regard to personality, lifestyle, and finances....this agreement is doomed to failure IMO.