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1. Parties: Identifies all parties entering into the fractional ownership agreement
2. Background: Sets out the context and purpose of the agreement, including details of the asset to be jointly owned
3. Definitions and Interpretation: Defines key terms used throughout the agreement and interpretation rules
4. Ownership Structure: Details the fractional ownership percentages and structure of ownership
5. Purchase Price and Payment: Specifies the total purchase price, individual contributions, and payment terms
6. Management and Operation: Outlines how the asset will be managed and operated, including decision-making processes
7. Rights and Obligations: Details the rights and obligations of each fractional owner
8. Cost Sharing and Expenses: Specifies how costs, expenses, and profits will be shared among owners
9. Transfer Restrictions: Sets out restrictions on transferring ownership interests
10. Exit Mechanisms: Details procedures for owners to exit the arrangement
11. Default and Remedies: Specifies what constitutes default and available remedies
12. Dispute Resolution: Outlines the process for resolving disputes between owners
13. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and jurisdiction
14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Asset Usage Schedule: For assets that require scheduling of usage rights among owners (e.g., vacation properties, vehicles)
2. Insurance Requirements: Detailed insurance obligations when the asset requires specific coverage
3. Property Management: Specific provisions for real estate assets requiring property management
4. Regulatory Compliance: Additional compliance requirements for regulated assets or industries
5. Tax Matters: Specific tax arrangements and obligations, particularly for international owners
6. Financing Provisions: If the purchase involves external financing or mortgages
7. Right of First Refusal: Provisions giving existing owners priority in purchasing other owners' shares
8. Special Purpose Vehicle: Provisions related to SPV structure if ownership is held through a company
1. Schedule 1 - Asset Description: Detailed description of the asset including specifications, condition, and value
2. Schedule 2 - Ownership Percentages: Detailed breakdown of ownership percentages and corresponding rights
3. Schedule 3 - Initial Contributions: Details of initial capital contributions from each owner
4. Schedule 4 - Management Rules: Detailed rules and procedures for asset management and decision-making
5. Schedule 5 - Cost Allocation: Detailed breakdown of cost sharing arrangements and formulas
6. Schedule 6 - Usage Rules: Specific rules governing the use of the asset by owners
7. Appendix A - Valuation Methodology: Agreed methodology for future valuations of ownership interests
8. Appendix B - Required Notices and Forms: Standard forms for notices, transfer requests, and other formal communications
Real Estate
Luxury Assets
Aviation
Maritime
Investment Management
Wealth Management
Property Development
Financial Services
Professional Services
Asset Management
Legal
Finance
Investment
Asset Management
Wealth Management
Compliance
Risk Management
Corporate Secretarial
Property Management
Business Development
Chief Executive Officer
Chief Financial Officer
Chief Legal Officer
General Counsel
Legal Director
Investment Manager
Asset Manager
Property Manager
Wealth Manager
Corporate Lawyer
Investment Director
Real Estate Director
Finance Director
Company Secretary
Compliance Officer
Risk Manager
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