Two members of my club are interested in forming a partnership on a glider. They asked me if they should have a written agreement between themselves.

I said "yes" and we talked about some ideas about what would be in the agreement (annuals, insurance, upgrades, upkeep, etc, etc).

But I am sure someone out there has been through the same situation and has a good sample glider specific agreement that they could share.

If so, please drop me a line. jhderosa <++> yahoo.com.

Thanks, John

On Saturday, August 7, 2021 at 11:45:58 AM UTC-7, John DeRosa OHM Ω http://aviation.derosaweb.net wrote:
> Two members of my club are interested in forming a partnership on a glider. They asked me if they should have a written agreement between themselves..
>
> I said "yes" and we talked about some ideas about what would be in the agreement (annuals, insurance, upgrades, upkeep, etc, etc).
>
> But I am sure someone out there has been through the same situation and has a good sample glider specific agreement that they could share.
>
> If so, please drop me a line. jhderosa <++> yahoo.com.
>
> Thanks, John

AOPA has a web page on the subject here:
https://www.aopa.org/go-fly/aircraft-and-ownership/buying-an-aircraft/pilots-guide-to-co-ownership

and Twin Cessna has a sample agreement here:
https://twincessna.org/pdf/SampleTwinCessnaCo-ownershipAgreement.pdf

On Saturday, August 7, 2021 at 2:08:29 PM UTC-6, soa...@yahoo.com wrote:
> On Saturday, August 7, 2021 at 11:45:58 AM UTC-7, John DeRosa OHM Ω http://aviation.derosaweb.net wrote:
> > Two members of my club are interested in forming a partnership on a glider. They asked me if they should have a written agreement between themselves.
> >
> > I said "yes" and we talked about some ideas about what would be in the agreement (annuals, insurance, upgrades, upkeep, etc, etc).
> >
> > But I am sure someone out there has been through the same situation and has a good sample glider specific agreement that they could share.
> >
> > If so, please drop me a line. jhderosa <++> yahoo.com.
> >
> > Thanks, John
> AOPA has a web page on the subject here:
> https://www.aopa.org/go-fly/aircraft-and-ownership/buying-an-aircraft/pilots-guide-to-co-ownership
>
> and Twin Cessna has a sample agreement here:
> https://twincessna.org/pdf/SampleTwinCessnaCo-ownershipAgreement.pdf

AOPA has certainly altered their guidance in the past five years.

It seems that formal co-ownership agreements are now acceptable. A hold harmless clause among owners is clearly necessary whatever organizational form is selected. Apparently the ability to pierce the corporate veil of LLCs and Corporations is easier than previous assumed, making personal assets vulnerable. In terms of multiple owners, it still appears easier, to me, to establish an LLC or Corporation rather than a co-ownership agreement so that part-owners can move in and out of the entity without originating a new document each time, nor an associated FAA filing with its potential tax imprications. Colorado requires a $25 amendment here in Colorado. And properly structured and executed, the LLC or Corporate form, might still offer additional liability protection or at least discourage attribution efforts againt the other owners in the case of an unfortunate event. Although Limited Liability Partnerships (LLP) are an organizational form here in Colorado, it is not a approved organizational form in all states, thus treatment by the courts may not be the same should an owner/operator of the aircraft have an unfortunate event in another jurisdiction.

My first shared ownerships were in the UK, called a syndicate. Part of the invitation to join was some mentorship, which included the agreement that the glider was for soaring and fly cross-country in pursuit of badges, records, and for competition. All of the owners agreed that lack of crew should not hamstring a member from attempting flights, but each would assist in a retrieve if necessary. Loss of some sleep should not be a worry and that should a member need help, call regardless of the time. Of course the length and breadth of the Uk was pretty much reachable in a few hours, so such an agreement might not work as well here in the USA. Still pretty reassuring. Not hard to be a great soaring partner. Of course, the members of the LLC should have some sway in a change of makeup. We've had a few in my chapter here in the US and they seemed to have been agreeable arrangements.

Just my $0.02.

Frank Whiteley