In his most recent contribution to Business Jet Traveler, Shaircraft CEO, James Butler, describes the most routinely unseen or glossed over issue by fractional owners—the substantial losses they may suffer when selling shares back to their provider.
“[P]roviders generally try to buy back shares at a discount from fair market value,” writes Butler, an expert who’s represented many owners in fractional repurchase disputes. “[Y]ou’re at a distinct disadvantage. Comparable sales information is hard for the layman to come by, and the information offered by the provider, which is difficult for the novice to decipher, may be misleading.” Butler offers advice as to how to structure your contract at the outset to make sure that you’ll get a fair shake at the end.
Inside Fractionals: “Beware of Buyback Provisions”
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