The New York Family Cottage Limited Liability Company (LLC) operating agreement should address these issues:
- Do family members have the first right of refusal before the cottage can be transferred to a non-family member or ex-spouse?
- Will the purchase price be based on an appraisal or a predetermined formula?
- How is responsibility for the expenses of owning, maintaining, and improving the property allocated?
- What is the decision- making procedure to determine which maintenance and improvement expenditures should be undertaken?
- How are expenses shared among the family members?
- What is the enforcement mechanism if a member does not pay his or her contribution, such as: interest charges and penalties, restrictions on the use of the property and involuntary transfer of membership interests to the other family members?
- Is there a calendar system of occupancy, to fairly allocate the most desirable dates, such as high seasons and holidays?
- What is the accountability system for damage to the property caused by members, guests, or pets?
- Can the cottage can be rented to non-family members?
- How is the personal property, such as furniture, divided- up if the cottage is sold?
- Should the parents own the voting interests and the children own the non-voting interests?
- Should mediation and arbitration be required to prevent lawsuits due to disagreements?
Contact a New York business attorney to have an operating agreement drafted that meets the particular needs of your family.