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Ft. Lauderdale, FL, United States, 2005/12/12 - Boat partnerships that work make owning and maintaining a boat cost a lost less money, time, and hassle. This translates into more pleasure. However, boat partnerships that fail can be hell.
Buying a boat with a friend, or others, can save everyone lots of time and money, however, everything needs to be well thought out.
It is very important that everyone have the same expectations and all agree on how to share the responsibility of yacht ownership. It is also very important that all of this is put down in writing. What follows are some of the areas that should be discussed.
Boat partnerships that work make owning and maintaining a boat cost a lost less money, time, and hassle. This translates into more pleasure. However, boat partnerships that fail can be hell.
Examples of what need to be agreed upon are:
1. Legal paperwork, as in who exactly are the partners and who is listed on the Documentation, title, Bill of Sale, etc. This covers whether the partnership is a legal entity, such as a corporation, or whether it remains owned by the individuals.
2. Insurance, such as in the coverage amount, area, and deductible, while also insuring that all partners are considered. This will also cover whether the boat can be chartered to a non-partner and whether a partner's family, or friend(s), can use the boat without the partner onboard.
3. Dockage, as in where and how much it costs.
4. Maintenance and upkeep, as in what will be done by the partners (i.e.: cleaning and basic maintenance) and what will be done by outside contractors. This should also cover any damage that may be caused by a partner.
5. How many people are allowed onboard and whether pets can be brought a long.
6. The purchase of equipment and gear.
7. How to deal with a partner that wants to sell their share, or can not continue to maintain their share.
8. The existence of a "slush/contingency" fund to cover and emergencies.
This agreement should also address the fact that the partnership at some point must be dissolved. Finding a good boat may be a lot easier then finding a good partner(s). With this in mind it may be better to find the partner(s) first, before buying the boat.
Also, the persons involved must go over the profits that will be made if the boat will be used for charters, or sailing vacations.