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Can a company sell fractional ownership in apartments they do not own?

Can a company sell fractional ownership weeks for this apartment when they only have a rental agreement in place. We did research and found out that almost nothing from what we have been told was true.
Category: Real Estate Legal Issues
Asked 10 years ago
Steward
bangkoklawonline

Answers (1)

Maybe they sell a sublease? You must really ask yourself what they are selling. Fractional ownership of what? It is not a percentage of ownership as foreigners cannot own land. It often involves a third party and a Thai party owning the land and another party owning the building and a lease (if any). What they also could be selling is shares (fractional ownership in a limited company) in for example a BVI or what you currently also sometimes see is Hong-Kong limited company. These companies have again a share in a Thai compnay that actually owns the property as a whole. These structures are not sound but dodgy and usually it is not fractional ownership of an asset but at best fractional ownership in a tenancy with a complex contract structure suggesting more. When you drive around in Phuket you see warning signs for these time share and fractional ownership scams, saying: "MANY OFFERS FOR TIMESHARE AND HOLIDAY CLUB, PRODUCTS MAY BE MISREPRESENTATION OR BOGUS PRODUCTS" Also read question: can I get my money back from Absolute Vacation Club (timeshare) or have my membership resold?
Answered 10 years ago
Nad
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