Offered in good faith by the present owner of MaryBelle:

First, here's some good advice, part of which was in a boating magazine describing "boat sharing". I trust the magazine (I've forgotten which one it was) doesn't mind me quoting bit of their article because it does explain the need for precautions:

With a share in a boat you get to go boating for a fraction of the cost while relieving yourself of the dreaded maintenance, which can be arranged by an appointed "manager" who is paid to care for the boat. Unsurprisingly, that's music to the ears of time-poor professionals for whom a couple of days a month swinging on the anchor at Refuge Bay or The Basin, or in the twilight splendour on Pittwater, or cruising the Hawkesbury, is time well spent.

Think about what you will be left holding if a boat-share project goes belly up. Having equity in a co-owned vessel is what distinguishes time-share boating clubs from fractional boat-ownership syndications. Besides having something tangible to sell at the end, fractional boat ownership creates responsibility and pride, which in turn leads to well-kept boats.

"Boat-share makes good economic sense and the creation of syndicates stops boats from sitting on the water and wasting away," explained a Sydney lawyer who owns shares in a yacht.

"But with that comes all the challenges of creating a family. You have syndicate members that you get along with, but you may find you have nothing in common with others," he says. But, unless you want to, you don't have to mix together.

Though arrangements vary widely, it's better to have equity in the boat. Ownership should be secured by transparent contracts, no hidden costs, conflict resolution mechanisms and levy owners for maintenance and marina fees, plus unpredictable items. Fuel will probably cost extra.

Of course, you should make detailed legal and financial inquiries before placing your faith in a binding boat-share contract. And if you plan to join a private syndicate, ensure there is a contract, even if you know the proposed co-owners well.

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Thus the following arrangement is proposed by the present owner who will be the vendor of "MaryBelle" under this proposed sale. 

1.0 Intent and Purpose is:   

1.1   Four persons could jointly purchase from the present owner, at a cost of $79,000 per ownership-share, the following:

(i)   the two bedroom 12.5 metre HomeCruiser (the asset-vessel) named “MaryBelle” (Maritime Registration No: 55862, and Maritime Waterways H.I.N. Boatcode: AUWWA 125335D34) including all furniture, fittings and accessories contained within

(ii)  continuation of the present rental occupancy of marina berth F12 at Empire Marina in Bobbin Head whilst granted (including rights to the $1,000 deposit already lodged),

(iii)   continuation of all operational arrangements presently in place in regard to insurances, registration, servicing and similar services (providing that the various suppliers of all such arrangements do agree).

1.2   That the four persons who would thus become share-owners of the asset-vessel, undertake to equally share payments of all the operational and running costs (excluding petrol which would become a personal expense according to individual use). Below are estimated costs but, note, based where possible on past actual costs:

A viewpoint about the cost of enjoying 13 weeks of waterways' holiday per year, every year for many years to come, for any share-owner who didn't wish to outlay any money at all: 

• suppose you borrowed the $79,000 at say 8% p.a.                                                  = $ 6,320 p.a. in bank interest

• pay your $150 per week upkeep                                                                               = $ 7,800 p.a.   .... the total would be $ 14,120 p.a.

• the result is your family has access to 13 weeks of waterfront holidays if you're prepared to allocate only $271.50 every week!

• that also translates to $1,086 per holiday-week! Now if you stayed in a family-unit in a waterfront motel, what would that cost?

• also ... where could your family have 90 days access EVERY year to an absolute waterfront suburban holiday home where you just walk on board and don't even have to move from the marina unless you wanted to, and for only $156 per "stay-on-board" day!

And, under this scheme, you don't have to outlay any money at all!

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1.3  Preliminary rules of usage proposed for discussion (which could of course be varied according to mutual agreement between all owners):

     (i)  In broad principle, one plan is for each of the four owners  use the vessel for one full week in every four weeks, thus each would have 12 weeks per year spread equally over all 4 seasons. Then the 2 weeks covering Christmas/New Year and the 2 weeks surrounding Easter could be allocated by rotation from year to year; two families could have one week each at say Christmas and the other two families having a week each at Easter.  Then the next year, this would be rotated so the "Christmas families" take Easter, and vice versa.  

    (ii) A second way could be to adopt use of a points system. This is now explained:

Usage could be managed using an online booking system on a website. The system will allow an owner to make a booking to use the boat at anytime. Each day of usage will cost a certain number of points depending on whether it is a weekday, weekend, or public holiday. So as each owner uses the boat they will accumulate points against their name. The points allocated are then used as a means of prioritising use to one owner in the event that multiple owners want to use the boat on the same day. i.e. the owner who has the lowest points balance will be given priority. This system apparently works very well and, based on the history of others who use this system, rarely would an owner have to enforce the points system to get priority. On most occasions a simple telephone call between the owners sorts out any clash.

     (iii)   Service of motors usually takes only a half day at the marina berth which should not interfere with any time usage. However anti-foul could take several days and this time would have to be planned.

2.0   Disclosures:

2.1   Basic features of MaryBelle are:

(i)                 as described on the website page that has lead to accessing this web-page, the vessel is fully and tastefully furnished and professionally constructed of the finest quality marine grade aluminum and welded only by ISO certified specialist welders; the vessel is now a little over 5 years old; all GST obligations were met and paid at the time of the construction of the vessel

(ii)               approximately 12 tonne in weight, the vessel is twin hulled, 12 metres long and 5.4 metres wide; the downstairs floor area is approx 54 square metres inside with an upper deck of approx 50 square metres of which 70 % is covered by a high quality, recently replaced, canvas bimini top; entertaining table and 12 chairs,

(iii)             main sleeping accommodation is in 2 bedrooms for 4 people (the second bedroom converts to a lounge area allowing teenaged children to play games or movies) and the lounge-dining area becomes a third bedroom to accommodate at least 2 more people in the fold-out lounge/double-bed but with sufficient space for 2 more to sleep in fold-up stowaway beds; thus 8 can sleep downstairs; additional upstairs sleeping is possible in favourable weather conditions in inflatable mattresses

(iv)             the vessel, by size specification, is allowed to carry 22 people under Maritimes guidelines; there are life jackets to suit

(v)               2 x 50 HP 4 stroke Mercury Big-Foot outboard motors allow cruising speeds of approximate 4 knots at 2,600 revs (and underway there is almost silence in the lounge areas); approximate running costs in petrol under $10 per hour;  maximum speed would not exceed 6 knots even at 3,500 revs

(vi)             tanks for fresh water, grey/black water are each in excess of 400 litres; holding tank pump-out fittings are installed

(vii)           familiar home-style bathroom fittings, gas hot water heater and kitchen appliances, including 12vDC/240vAC automatically switching refrigerator with freezer, are included

(viii)          a 28 inch LCD TV using a specialised twin aerial system for digital TV reception is installed; DVD/VCR and smaller TV is in the second bedroom;  an CD audio system plays music and radio throughout, including upstairs area

(ix)             2 x heavy duty 240v AC to 12v DC alternators automatically charge the 4 x 200 amp-hour gel sealed marine batteries whilst at the marina; a 12vDC system provides adequate lighting, water pumps and instruments operation; a 2.2kva generator provides 240vAC at moorings.  

2.2  Proposed legal arrangements:

(i)                 The purchase arrangements for MaryBelle will involve a legally drawn up contract directly between the vendor and the four parties with tenancy-in-common provisions so that, at any time any owner could, under defined conditions, sell their share to another person who is suitably approved by the other owners,

(ii)               Sample contracts would be tabled for agreement by the parties before deposits were accepted,

(iii)             The contract would allow for a deposit of 10% of each ownership-share amount of $79,000 (i.e. $7,900 each) being lodged in escrow prior to the time the vessel was removed from water for both the next anti-foul as well as for an inspection by an independent surveyor to confirm that the vessel's structure is suitably sound. Any structural fault discovered, or other requested essential work agreed upon, would be corrected at the vendor's cost, and to the buyers' reasonable satisfaction, before the sale was finalised.

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