Is it legal to allow you guests on boat if you are in boat share agreement?

A boat share agreement is a legally binding document which enables a boat owner to share his boat to any individual or group of people for a specified time solely for leisure purposes. During the course of time when the boat is under sharer use he is entitled to fair use of the boat which includes he can invite guests on board provided they are not causing any damage to the boat. This is simply a matter for negotiation. Also for your friends safety it is good to have a boating license which can be obtained after passing boating regulatory tests as it enables you to sail safely.

Good thing about boat share agreement is the document is open for flexible options. Still then in order to formulate fall back mechanism it is good to negotiate terms. It depends on boat owner and acquirer willingness to open up on options as for acquirer a boat sharing is a good option instead of paying a lot in maintaining and owning a boat. Few of the aspects while negotiating an agreement includes whether the owner will provide its own help on board provided if the sharer is not aware of sailing the boat or how the handover will be conducted after the use of the boat.

Similarly terms like how many people can be accommodated on the boat. The parties might also agree to set morning/afternoon/evenings, half days or whole days every week as per acquirer and owner discretion.

Following are the few more key aspects that need to be elaborated while entering into the agreement.
• Terms of beneficial interest - beneficial trusts provision.
• Price and payment for the Boat.
• How many people allowed into occupation at one time and who they may be.
• Who and how will manage payment of expenses.
• Management of the Boat.
• Undertakings by the parties.
• Alternative exit strategies.
• Effect of termination.
• What if someone wants to sell his share or sell the Boat?
• Other legal provisions.

 Boat sharing can be of two types one that I mentioned above is on small scale and require less comprehensive legal documentation. All you need is a simple yacht share which involves the boat owner and one or more than one acquirers who co-own the boat on limited basis. You can enjoy the sailing experience for a small percentage of the cost, and forget about the hassle of cleaning, berthing, insurance and maintenance. For busy professionals or people with young families, it’s a very appealing idea. Its hassle free and require less litigation and if you enjoy better relations with boat owner it’s even better. Second type of boat-share scheme is any arrangement involving the shared use of a ship and boats on commercial basis. These are variously referred to as fractional ownership, time-share, syndicates, and club share, boat share and trust schemes. Ships and boats are jointly owned and registered in the names of persons with equity in the ship.

Many management entities operating or associated with boat-share schemes are legally considered to be the owner of the vessel, because the company exercises the powers of the owner and allows it to be operated by members of the scheme. You should carefully consider all the legal and financial obligations before putting ink to binding boat-share or membership contract if you plan to join a private syndicate. Also you need to know what you might owe or be liable for if the syndicate meets an untimely end. Though litigation in this case is lengthy but equity holders and syndicate must formulate and sign agreement. Also as equity holder you should know where the boat will be moored and if your contract gives you reciprocal rights on other boats or fleets. Apart from that happy sailing and enjoy your ride.