Smooth Sailing Starts with a Clear Agreement
Buying a boat is a significant investment – not just financially, but also in time and upkeep. For many West Australians, sharing the cost and enjoyment of boat ownership with a friend or family member can be a smart and rewarding decision. Having a co-owner can make the purchase more affordable, and sharing the experience of boating – whether fishing, cruising, or holidaying – can enhance the enjoyment.
However, without a clear agreement in place, co-ownership can also become a source of tension. Disagreements over usage, costs, or maintenance responsibilities can quickly turn a shared dream into a legal headache. That’s why it’s crucial to put a written boat sharing agreement in place before you set sail.
A well-drafted agreement should clearly set out each owner’s rights and responsibilities. It should specify how ownership is held – whether as equal partners or in some other proportion – and how major decisions are to be made. Maintenance obligations are another key issue. Will the owners share routine upkeep, or engage a professional service? Who organises and pays for repairs? These matters should be agreed in advance to avoid misunderstandings.
The agreement should also deal with scheduling. A fair system for deciding who gets to use the boat and when – particularly during peak periods – is essential. You’ll need a process for resolving situations where both owners want to use the boat at the same time.
Importantly, the agreement should also cover exit strategies. What happens if one owner wants to sell their share, or if someone wants to bring in a third owner? Setting out the procedure in advance – including rights of first refusal and how to value the share – helps avoid disputes down the track.
Other useful provisions include a dispute resolution clause, such as mediation or arbitration, and a process for dealing with non-payment. If one owner is unable or unwilling to contribute their share of expenses, the agreement should spell out what happens next – for example, whether the other owner can recover the shortfall or compel a sale.
With a clear, simple agreement tailored to your needs, co-owning a boat can be a smooth and enjoyable experience. Our firm can assist you in preparing or reviewing a boat sharing agreement that ensures your partnership is built on calm waters.