> Already bought the land - an acre near our local ski hill in June
> start the cabin. I'm buying it with two couples as partners and we're
> now writing a partnership agreement.I know we should have made the
> agreement before purchasing the land but it was a hurry up deal. A
> lawyer will write the actual agreement but I'd like some insight into
> what should be in there. Any suggestions on what to put in the
> partnership agreement from your experience would be appreciated.
Below are a few things you need to consider. Everything really should
be down on paper and signed by all parties because of the unfortunate
reality of things like death, divorce, bankruptcy, etc.
1. Form of ownership (is it a corporation, a partnership, a trust,
2. Shares (is each party sharing ownership equally)
3. Group expenses (obvious things like taxes, insurance, maintenance,
remodling, repairs, etc. as well as extraordinary )
4. Use schedules (how often do each of you get to use it)
5. Policy on renting it (if you choose to rent it, to whom under what
circumstances and how is the money accounted for)
6. Policy on lending it (this potentially is a bigger problem than
almost anything - if one of the couples loans the cabin to their
uncle's brother's partner's son and the place gets trashed, it can
cause all kinds of bad feelings among the owners)
7. Exit strategy (you need to spell out how someone exits the
ownership arrangement - can they sell their interest without input from
the other partners, do the other partners have some sort of first right
of refusal, do you hire an appraiser to establish the value, etc.)
Things will go much more smoothly down the road if you set these (and
more) ground rules up front.
Sent via Deja.com http://www.deja.com/
Before you buy.