Joint Ownership Agreement for Aircraft: What You Need to Know
Joint ownership of an aircraft is a popular choice for individuals and businesses looking to reduce the cost of aircraft ownership. However, joint ownership can come with its own set of challenges and risks. To ensure a smooth and successful partnership, it is important to have a joint ownership agreement in place.
A joint ownership agreement is a legal document that outlines the terms of ownership and use of the aircraft by all parties involved. The agreement should be drafted and reviewed by an aviation attorney to ensure that it meets all legal requirements and protects all parties involved.
Here are some of the key elements of a joint ownership agreement for aircraft:
Ownership Percentage
The agreement should clearly state the percentage of ownership of each party involved. This includes the initial purchase price, as well as ongoing expenses such as maintenance and insurance.
Use of the Aircraft
The agreement should also outline the permitted uses of the aircraft, such as personal use, charter, or business use. It should also detail who has priority over the use of the aircraft and how scheduling conflicts will be resolved.
Expenses and Responsibilities
Each party should know their responsibilities and expenses related to the aircraft, including maintenance, repairs, storage, and insurance. The agreement should also outline how expenses will be divided among the parties and how payments will be made.
Sale and Dissolution
The agreement should address what happens if one party wants to sell their share of the aircraft or if the joint ownership agreement is dissolved. It should detail the process for valuing the aircraft, determining the fair market value, and how the proceeds from the sale will be distributed.
Dispute Resolution
Lastly, the agreement should outline how disputes will be resolved between the parties. This can include mediation or arbitration, and should ensure that any conflicts can be resolved efficiently and fairly.
In conclusion, a joint ownership agreement for an aircraft is essential for a successful and smooth partnership. It will ensure that all parties involved are aware of their responsibilities, expenses, and permitted uses of the aircraft. It will also protect all parties in case of disputes or if one party wants to sell their share. An aviation attorney can help ensure that the agreement meets all legal requirements and is tailored to your specific needs and situation.