lovetwinprops
Pre-Flight
Hi-
I'd appreciate some advice.
As I mentioned in a recent thread introducing my new plane, I am in a co-ownership with "Bob" which began on 9/3. Bob had co-owned the plane for over 15-1/2 years with "Bill." They had been looking -- though not hard -- for a third partner to share expenses, finance the engine overhaul, etc. But right about the time I contacted Bob about the 1/3 co-ownership, at the end of April, Bill told Bob that he wanted to sell.
Bob really didn't want to sell the plane. He figured that, having owned it so long, and at 66 years of age, he didn't want to go back to being a renter; he said to me that, if they sold the plane, he wouldn't fly anymore at all.
The reality was, over a 2-year period, they had had no inquiries from anyone who was really serious about joining in as a 1/3 partner; and Bob told me that if I didn't buy Bill's share, he didn't think it would be possible to find another 1/2 co-owner so he could stay on. The basic message I got was that, if I didn't buy Bill's 50%, they'd have no choice but to put the plane up for sale. At the same time, even if I did buy Bill's 50%, Bob was concerned that, because it would still be just he and one other person (whose investment would be in paying Bill), there still wouldn't be the money for the overhaul that the hoped-for third co-owner would have brought in.
Throughout the past nearly 5 months, Bob has repeatedly and matter-of-factly said he knew his expenses would go up if I bought Bill's 50% of the plane, as I had zero time in make and model and fewer than 10 hours complex and high-performance. He seemed to accept that the price of his being able to continue owning and flying the plane was an increase in his share of the fixed costs (because of insurance).
So after a bit of wrangling with insurance companies, we got a policy on 9/11. Bob and Bill's previous insurance was $1,311 per year, and the new insurance is $1,970 (actually $2,070 minus a $100 discount negotiated by the agent). That's a difference of $659, or $329.50 ($27.46 per month) each. Now we're just doing the final paperwork and deciding whether to pay up front or finance the insurance with monthly payments.
Then, last night I got the following text from Bob:
I also need to talk to you about the surcharge due to experience. I don't feel I should be hit with a bill for an extra $400 for the insurance because of your low hours. I feel you need to handle that yourself but we can talk about it.
I was flabbergasted, as he had always seemed to fully accept that his costs would go up a bit so he could keep the plane.
Unfortunately, we have not finalized the language of our Co-ownership Agreement, though we're close. If it had been finished and signed, this would be a non-issue because it would be spelled out in a legal agreement.
My gut reaction was that I should fire off a note to him, "Why are you springing this on me now? Why didn't you discuss this with me months ago, or even ONE month ago, before I bought Bill's 50% share?" But so far I have not responded at all.
Considering all the above, what advice do you have for me? Should I try to reason and negotiate with Bob about this? Should I dig in my heels because he never mentioned it before; if anything, he stated the opposite? Should I accede to his wishes? Other ideas?
Thanks very much for your consideration and (hopefully) wise counsel.
Gerry
I'd appreciate some advice.
As I mentioned in a recent thread introducing my new plane, I am in a co-ownership with "Bob" which began on 9/3. Bob had co-owned the plane for over 15-1/2 years with "Bill." They had been looking -- though not hard -- for a third partner to share expenses, finance the engine overhaul, etc. But right about the time I contacted Bob about the 1/3 co-ownership, at the end of April, Bill told Bob that he wanted to sell.
Bob really didn't want to sell the plane. He figured that, having owned it so long, and at 66 years of age, he didn't want to go back to being a renter; he said to me that, if they sold the plane, he wouldn't fly anymore at all.
The reality was, over a 2-year period, they had had no inquiries from anyone who was really serious about joining in as a 1/3 partner; and Bob told me that if I didn't buy Bill's share, he didn't think it would be possible to find another 1/2 co-owner so he could stay on. The basic message I got was that, if I didn't buy Bill's 50%, they'd have no choice but to put the plane up for sale. At the same time, even if I did buy Bill's 50%, Bob was concerned that, because it would still be just he and one other person (whose investment would be in paying Bill), there still wouldn't be the money for the overhaul that the hoped-for third co-owner would have brought in.
Throughout the past nearly 5 months, Bob has repeatedly and matter-of-factly said he knew his expenses would go up if I bought Bill's 50% of the plane, as I had zero time in make and model and fewer than 10 hours complex and high-performance. He seemed to accept that the price of his being able to continue owning and flying the plane was an increase in his share of the fixed costs (because of insurance).
So after a bit of wrangling with insurance companies, we got a policy on 9/11. Bob and Bill's previous insurance was $1,311 per year, and the new insurance is $1,970 (actually $2,070 minus a $100 discount negotiated by the agent). That's a difference of $659, or $329.50 ($27.46 per month) each. Now we're just doing the final paperwork and deciding whether to pay up front or finance the insurance with monthly payments.
Then, last night I got the following text from Bob:
I also need to talk to you about the surcharge due to experience. I don't feel I should be hit with a bill for an extra $400 for the insurance because of your low hours. I feel you need to handle that yourself but we can talk about it.
I was flabbergasted, as he had always seemed to fully accept that his costs would go up a bit so he could keep the plane.
Unfortunately, we have not finalized the language of our Co-ownership Agreement, though we're close. If it had been finished and signed, this would be a non-issue because it would be spelled out in a legal agreement.
My gut reaction was that I should fire off a note to him, "Why are you springing this on me now? Why didn't you discuss this with me months ago, or even ONE month ago, before I bought Bill's 50% share?" But so far I have not responded at all.
Considering all the above, what advice do you have for me? Should I try to reason and negotiate with Bob about this? Should I dig in my heels because he never mentioned it before; if anything, he stated the opposite? Should I accede to his wishes? Other ideas?
Thanks very much for your consideration and (hopefully) wise counsel.
Gerry
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