Burger wrote
You wrote this yesterday:
The project land is never subdivided into individual house plots but remains whole whether that is made up of one or more Chanotes.
The Chanotes are in the name of the "Company" and remain an infinite asset of the company. At completion, a buyer, will be allocated the proportional number of shares within the company allocated to the house he is buying.
In short one project, one company, multiple share holders.
To sell your house, sell your shares.
So if you are saying no sub-dividing, therefore no seperate land papers (chanotes), then why are farangs going to land offices to transfer land papers into their wives/companies name ??
In the scenario I described they wouldn't.
Burger wrote
If you build an extension and a swimming pool and your house is now worth a million Baht more, do you get more shares ??
I don't understand.
The answer is no, the number of shares reamin fixed but their value fluctuates.
The company Articles of Association disallows any external alterations to the property. Cosmetic improvements are allowed but these have to be approved by the "Juristic Committee". The addition of a swimming pool provided the pool was in line with the overall project concept would be allowed.
The share value is governed by market forces and is only realised at the time of sale. The allocation of shares is transparent and determined by the size of plot, location within the project and cost of build at inception in line with an agreed formula recorded within the Articles of Association. Regarding the sale of shares, existing share holders must be given first option, new share holders must be approved by the "Juristic Committee".
The value of shares between different properties can vary ie a seller is not bound to sell his shares at a fixed price, he has the freedom to negotiate the best price he can for his property subject to the controls defined within the AoA.
Cheers
