- Length:16 pages (3235 words)
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About this document
This agreement covers any situation where more than one parties share ownership and use of an aircraft for leisure or business. The agreement has been drawn to as to regulate occupation where only one owner uses the aircraft at any one time. However, there is nothing to prevent other owner sharing time with another owner.
First, you should consider what is the most suitable structure for your sharing proposal. If you are looking at a commercial arrangement or one for more than ten people, then it would be better to hold the property in a limited company and buy and sell shares in it. Then ownership of the property itself never changes. No stamp duty is paid once it is bought as the right of occupation can be treated as a licence.
However, running a company does cost money, so between 2 and 10 owners it is a matter of preference as to whether you want the formality, expense and greater certainty of a company structure and shareholders agreement or the lower cost and comparative informality of an agreement like one of these.
Even if ownership of your aircraft is registered with some organisation, the particulars will not record the shares in which the aircraft is held. So If you own 60% and I own 40% we have to record that in some other document. If we do not do so, “the Law” will assume we own in the shares in which we contributed to the purchase price. This may or may not be the same thing. These Net Lawman agreements specifically record the shares. They also record shares which may be owned by someone who is not a registered owner. Such an interest is called a beneficial interest.
Application and features
- Comprehensive fractional ownership document for any type of aircraft
- Sensible and practical provisions for shared ownership
- Written in plain English
- Explanatory notes to guide you
- Terms of beneficial interest - beneficial trusts provision
- Price and payment for the aircraft
- How many people allowed in the aircraft at one time and who they may be
- Who and how will manage payment of expenses
- Purchase of accessories for the aircraft – how they are purchased, whom they belong to
- Management of the aircraft, including operating costs
- Undertakings by the parties
- Timetable in the form of a schedule to allow you to arrange who will have the aircraft when
- Effect of termination
- Alternative exit strategies
- Other legal provisions