subject: The Fractional Airplane Ownership Deal Item List [print this page] If contract signing were as straightforward as buying a can of beans off the rack, buyers would recognize plainly what they're getting. However, that is not the same with major acquisitions including the sale of fractional airplane ownership shares . In this instance, you learn what to look for in the contract, and only when you're absolutely sure the contract is foolproof, should you proceed to sign.
You must receive a few documents to sign as your agreement to get fractional ownership of a boat or an airplane. The contract tells you that you have fully checked out and acknowledged the terms of possessing a share of the vehicle. Shaircraft Solutions, a consulting agency based in Maryland, points out four significant documents that you need to look out for.
Binder/Deposit Agreement
You should obtain this document, primarily if the aircraft still needs to be handed over to you. The binder or deposit arrangement should state the affirmation that the aircraft's value continues to be the same between the moment you agreed on it and the time the aircraft finally gets delivered for your use. Also, it needs to cite conditions as to whether the pledge you make is refundable or not.
Purchase Deal
This document verifies your purchase of the share of the airplane, in addition to provisions that the company may purchase it from you again the moment your contract term wraps up. It also includes what the company refers to as "ironclad" representations and warranties from the provider. For details in the contract to be regarded as "ironclad," they must be firm and explicit.
Master Dry Lease Exchange and Management Setups
The Master Dry Lease Exchange Agreement provides you a clear-cut notion on how the aircraft will be shared among the members via a setup fractional ownership. This commonly appears in fractional ownership transactions. On the other hand, the Management Agreement holds the core terms of your purchase. It provides info about when you are allowed to use the plane, the amount it'll cost you to operate it, and the hours granted to you.
To know more about the essential documents in any joint ownership arrangement, you can check out the organization's site at Shaircraft.com. Before you look at owning a share, educate yourself.
