When to use:
Whenever you would like to share ownership and use of a caravan or mobile home with more than one other party for leisure.
We have a similar agreement where there are more than 2 parties.
The agreement has been drafted to regulate occupation where only one owner occupies the mobile home or caravan at one time. However, there is nothing to prevent an owner sharing time with another owner.
Ownership: legal matters
We offer two versions here. One is for a situation where only two parties share - two individuals or two families, or whatever. The other is designed for more than two parties.
First, you should consider the most suitable structure for your sharing relationship. If you are looking at an arrangement 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, you may not want the formality, expense and greater certainty of a company structure and shareholders agreement in which case an agreement like one of these is perfect.
Even if ownership of your mobile home / caravan is registered in a company, those company documents will not record the shares in which the boat 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. These Net Lawman agreements specifically record the shares. They also record shares which may be owned by someone who is not a registered owner. This is called a beneficial interest or fractional ownership.
CB106 includes provision for:
· Terms of beneficial interest - beneficial trusts provision;
· Price and payment for the mobile home;
· How many people allowed in the mobile home at one time and who they may be;
· Who and how will manage payment of expenses;
· Purchase of accessories for the mobile home – how they are purchased, whom they belong to;
· Management of the mobile home, including operating costs;
· Undertakings by the parties;
· Alternative exit strategies;
· Timetable in the form of a schedule to allow you to arrange who will have the mobile home when;
· Effect of termination;
· Alternative exit strategies;
· Other legal provisions.
CB105, Mobile Home share agreement (more than 2 parties) includes similar provision, but provides for a management structure ordered by annual meetings of the owners, possibility of proxy voting, and more. The exit strategy allows for a share to be sold to a third party, after offering it to all other owners.
