CAN FRACTIONAL INTERESTS BE BOUGHT AND SOLD?
Q: Can we sell our fractional interest? A: Yes. Fractional shares can usually be sold to an affiliated individual or entity with few restrictions other than similar creditworthiness and/or “mission profile.” However, because a share represents a tenancy in common with many other owners, fractional managers typically prohibit any other sale unless it is approved by the manager (for example, with regard to the buyer’s creditworthiness and mission profile). That being said, fractional shares are occasionally sold through brokerage services. Any sale of a share, even a sale back to the program manager, may be subject to brokerage or transfer fees paid to the manager. These fees can be substantial (for example, 7% or more of the share’s appraised value), especially on early exits from the program (for example, at less than 24 months from inception). Q: If the prices of aircraft go up, can I make a profit on the sale of my fractional interest? A: It depends what you mean by “profit”. Histori
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- CAN FRACTIONAL INTERESTS BE BOUGHT AND SOLD?
