Legal Services for a Sharing Economy

Daniel Llew Le Mercier Sharing EconomyThe term “shared economy” is rapidly expanding and gaining popularity as more people are “sharing” their underutilized assets with strangers. People are connecting through online and mobile devices and organizing to share and re-use goods and services. The trend is towards “collaborative consumption” rather than purchasing items brand new and is driven by social media.

The concept was described by Newsweek magazine as “the start of consumers outsourcing assets that they are not required to own.” An home owner with a spare room may decide to rent it out, folks are ridesharing, household items such as tools, etc electronic items and bicycles are been shared between households. Some people may decide to even share their yard. Sharing is a new way of life and is becoming a growth industry.

In order to have a successful sharing arrangement it is necessary that a legal agreement is drafted by a lawyer. The lawyer will act as the facilitator and ascertain the needs of all the parties, explain the benefits and risks involved, mediate any conflicts, explain the legal framework and guide and assist the parties to reach an agreement that will best work for all involved. The document will clearly set out the terms of the agreement, an exit plan as well as all other matters that are relevant. We can assist you in drafting agreements of this nature.

Another area in which this shared ownership is gaining popularity is in the housing sector. Sharing is the solution to the unforgiving housing crisis and is triggered by financial necessity. Two or more parties may decide that they want to purchase a property together as this is the only way in which they will be able to afford to buy in the area they want to live in. A legal agreement called a Co-ownership agreement must be entered into by all the parties. This agreement will cover all the contingencies and set out clearly out the rights and obligations of all parties and also deal with all issues relating to the property ownership, maintenance etc.

Call us now on (03) 9571 5157 or contact us online if you require further information on a co-ownership agreement.

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