2 Person group agreement
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2 Person group agreement
Can anyone point me in the direction of a model agreement for two pilots sharing the ownership of an aircraft 50/50. I've found the LAA example group agreement at http://www.lightaircraftassociation....up%20Rules.pdf , but would appreciate a sight of something more specific for 2 equal shares only. Thanks.
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I don’t have exactly what you want, but I do have some model agreements for any number to own a glider. I suggest 2 things:
1. Look at a number of agreements if you can get hold of them, and pick the best bits out of each to compile your own; and
2. Make provision for things to change – one wanting to sell and not the other, a 3rd to join later (though it is not your intent at present) and any other circumstances that might change in future.
If you want to see what I have, send me you email address. HTH.
Chris N.
1. Look at a number of agreements if you can get hold of them, and pick the best bits out of each to compile your own; and
2. Make provision for things to change – one wanting to sell and not the other, a 3rd to join later (though it is not your intent at present) and any other circumstances that might change in future.
If you want to see what I have, send me you email address. HTH.
Chris N.
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I'd have thought that with 2 people the only thing you need to have in agreement is how to break up the arrangement. An agreement is only ever used when you disagree, and if you can't sort it out between two people then it's probably game over for your shared ownership.
Dave
Dave
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I'd have thought that with 2 people the only thing you need to have in agreement is how to break up the arrangement
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As in any agreement, let your watchword be ''take care''.
Especially in 2 person agreements. Dot the i's, and cross the t's, particularly when it comes to who does what. Ensure that 1 individual deals with the paperwork, confusion abound if two feel they do it.
Secondly watch for the, ''I just changed the brake pads'', I will pay for it, and deduct at annual time. Errr no.
Transparency is a must, backed by a decent agreement, that covers everything you can think of. I tend to go along the lines of what could go wrong???? Build it in, it probably will.
Also the mod/upgrade question comes along more often than you would think. Fuel, funnily enough also crops up. Think carefully about how you structure the wet/dry/fuel etc.
Especially in 2 person agreements. Dot the i's, and cross the t's, particularly when it comes to who does what. Ensure that 1 individual deals with the paperwork, confusion abound if two feel they do it.
Secondly watch for the, ''I just changed the brake pads'', I will pay for it, and deduct at annual time. Errr no.
Transparency is a must, backed by a decent agreement, that covers everything you can think of. I tend to go along the lines of what could go wrong???? Build it in, it probably will.
Also the mod/upgrade question comes along more often than you would think. Fuel, funnily enough also crops up. Think carefully about how you structure the wet/dry/fuel etc.
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The most important things:
Make sure the two have
- comparably deep pockets
- comparable attitude to maintenance and standards
- comparable attitude to currency
- comparable attitude to required aircraft equipment (avionics)
- both have spouses' support for flying (or have no spouses
)
- neither has a spouse about to drop a sprog (it tends to end one's flying)
- compatible flying habits (e.g. not both trying to fly on Saturday mornings)
If you don't make sure of these things, a contract won't be worth much because the syndicate will be substantially disfunctional - just like the majority of syndicates.
Make sure the two have
- comparably deep pockets
- comparable attitude to maintenance and standards
- comparable attitude to currency
- comparable attitude to required aircraft equipment (avionics)
- both have spouses' support for flying (or have no spouses
)- neither has a spouse about to drop a sprog (it tends to end one's flying)
- compatible flying habits (e.g. not both trying to fly on Saturday mornings)
If you don't make sure of these things, a contract won't be worth much because the syndicate will be substantially disfunctional - just like the majority of syndicates.
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Also think carefully about how you want to register it with the CAA.
You can either register the aircraft jointly, so that both of your signatures are required in all instances and communication will be with all registered parties. This can be impractical if you sell other shares, because you'd need to pay to re-register it each time. However, it does mean that from a registration point of view you will always be well aware of what's happening.
The second option is to elect a Trustee, so that only they apply to register it and only their signature is required in any further dealings with the CAA. It could work well if you sell other shares as it wouldn't require a re-registration, however bear in mind that as the name suggests you would have to 'Trust' that person to be dealing with the CAA on your behalf.
You can either register the aircraft jointly, so that both of your signatures are required in all instances and communication will be with all registered parties. This can be impractical if you sell other shares, because you'd need to pay to re-register it each time. However, it does mean that from a registration point of view you will always be well aware of what's happening.
The second option is to elect a Trustee, so that only they apply to register it and only their signature is required in any further dealings with the CAA. It could work well if you sell other shares as it wouldn't require a re-registration, however bear in mind that as the name suggests you would have to 'Trust' that person to be dealing with the CAA on your behalf.
