The most important distinction between these two forms of ownership is related to the disposition of the interests of each co-owner when he or she dies. The common interest of a tenant is transferred to the heirs of a person, according to their will or according to the law of the State, in the absence of a will. The surviving heirs and co-owners then become tenants together. On the other hand, the joint lease is characterized by a right of survivorship, which means that the interests of a deceased tenant are transferred to the surviving tenant(s). As for the co-ownership of the planes, this would mean that if you die, your share of the plane would go directly to your co-owner and not to your heirs. In a condominium agreement, you have the option to select co-owners and select people whose flight needs and flight habits complement yours. The term “co-ownership” is often used to mean “partnership”. However, these two agreements are not technically identical. A partnership includes an association of two or more persons who continue to co-own a for-profit business. Therefore, a partnership involves something far more complex than a simple common property. The goal of a partnership is to make a profit. So if you only want to share ownership of an airplane with another person, you`re a co-owner, not a partner. Even if ownership of your aircraft is registered with an organization, the data does not cover the shares in which the aircraft is held.
So if you own 60% and I own 40%, we have to put it in another document. If we don`t, “the law” assumes that we own the shares in which we contributed at the purchase price. It may or may not be the same. These Net Lawman agreements specifically cover stocks. They also cover shares that may be held by someone who is not a registered owner. Such an interest is qualified as a beneficial interest. This Agreement applies to all situations in which two or more persons share and use ownership of an aircraft for leisure or business purposes. The agreement was reached to regulate the profession in which only one owner uses the aircraft at the same time. The concept of co-ownership is very simple. It`s nothing but two or more people who share the responsibility of owning an airplane. If you spread the cost of owning the aircraft among several owners, your costs will decrease. The apparent simplicity of this agreement is the one that attracts a number of aircraft owners to a condominium agreement.
However, running a business costs money, so between 2 and 10 owners is a matter of preference, whether you want the formality, costs and greater security of a corporate structure and shareholders` agreement, or the lower costs and comparative informality of an agreement like this. Buying an aircraft, new or used, is always an important investment. A common and simple way to spread these costs is to share the costs with other buyers. A condominium agreement can cut operating costs in half or even a quarter. This thematic report contains information on how a joint lease can be properly established. The Q&A area provides answers to frequently asked questions, but if you still need information, feel free to call the Pilot Information Center at 800-USA-AOPA (872-2672) Monday through Friday from 8:30 a.m. to 6:00 a.m. ET. AOPA`s aviation specialists are happy to help you. Once you have made your decision to enter into a condominium agreement, your next important step will be to clarify the obligations of each of the co-owners.
We strongly recommend that you take the time to establish a list of “ground rules” for each co-owner. The next step is to bring this list to a lawyer who can establish a co-ownership agreement that would bind all the co-owners. The extra time and the relatively little extra effort that will result from it will far outweigh the risks of disagreements and misunderstandings that will arise later.. . . .