When it comes to rare and collectible cars, properly documenting the ownership can be crucial. This is one area where cancellation of the contract is not going to be an option in most cases. The appeal of collecting vehicles will purposely drive prices that are high but that are not prohibitive, pushing them out of reach for many. Yet, a legal expert in operating agreements can create opportunities for those with everything from classic muscle cars to rare modern works of art to own high end vehicles no matter how big the price tag might be. One of the most interesting things about this particular niche of the collectible world is that you can combine modern trading tools with the right legal strategy to pull off a new kind of investment opportunity that is uniquely customized to your tastes and your resources.
For those whose interest lies in the acquisition of one of these rare vehicles, the setting up of the operating agreement, and those who do the legal work so that the buyer/seller and the collector can all be protected is often the most rewarding part. When you take the time to understand exactly how a vehicle is collected, what is done to keep it working and looking good, and what types of documentation it will need during the process, the right operating agreement brings significantly more value to the table than a simple contract that applies to vehicle paperwork alone. In fact, the value that is often brought by an operating agreement when it combines functions and documentation makes it a preferred vehicle (as it were) for many acquisitions handled by attorneys who work to streamline the process for clients. The application of these types of agreements to vehicle collection and resale has certainly been a boon for many people and organizations looking to spend their money wisely.
A good operating agreement has its benefits not only for the person acquiring the car but also for individuals in the acquisition stage. One of the goals of putting this type of legal paperwork in place is to eliminate the headache of future paperwork that would otherwise have to be filed, including as witnesses and signatories. When the time comes for a vehicle to not only be purchased but also sell, many clients want to be able to step back while the vehicle does its moving from one collection to the next. However, there can be benefits to the right type of paperwork that are unintended yet still welcome for collectors and their lawyers while they enjoy their collection. Many individuals, companies, and organizations have been known to invest in these types of vehicles, and the paperwork plays a significant role in those successes. An attorney specializing in operating agreements makes this process easier.
Options for those who work with the right attorneys have historically included the following:
- The ability to purchase vehicles with fewer pieces of paper required.
- Higher statutes of limitations and regulations for vehicle paperwork (car titles, registrations, bills of sale, etc.).
- The ability for purchasers to avoid liabilities that would come into play without the necessary paperwork.
- Greater flexibility and creativity in the structuring of documents, both for the sake of the vehicles as well as for the parties involved.
- Eliminating paperwork that requires a signature at every purchase and sale.