Document background
The Fractional Ownership Agreement is designed for situations where multiple parties wish to share ownership of a significant asset in Australia, such as real estate, aircraft, or luxury items. This document type has become increasingly relevant as alternative ownership models gain popularity in the Australian market. The agreement comprehensively addresses all aspects of shared ownership, including initial purchase, ongoing management, usage rights, cost allocation, and eventual exit or transfer of ownership shares. It ensures compliance with Australian property law, securities regulations, and relevant state/territory legislation. The document is particularly valuable for investment groups, high-net-worth individuals, and businesses seeking to optimize asset utilization while sharing costs and responsibilities. The agreement must be carefully structured to avoid creating an unregistered managed investment scheme under Australian law and includes specific provisions for dispute resolution and asset management.
