Condo one person owning 10 per cent (mortgages, condos, percent, illegal)

[goodguy22222]

Can you get around the 10 percent rule of one entity owning more then ten percent of units in a condo community. By putting units in other family members names such as your children and have tax bills mail to you or would that be fraud. I live in a condo and the units have been finished for over 6 years. The developer kept over ten percent of the units as rentals he has the tax bills mailed to his development company but has put some units in his childrens names this way he says they can say not more then one entity owns more then ten percent for getting mortgages is this fraud and I sell my unit can I get in trouble if they say no more then ten percent is not owned by one entity? I'm worried I could get in trouble because I know.

[399083453]

You answered your own question. They are legally not in his name. They are owned by different people.

[LifeIsGood01]

Originally Posted by goodguy22222

s is this fraud and I sell my unit can I get in trouble if they say no more then ten percent is not owned by one entity? I'm worried I could get in trouble because I know.

How many units are in the condo.

If there are 50 units it means you can own 5 condos.

No you can not get in trouble for what other people do. If they choose to put the units in other people's names it's not going to affect you selling yours.

I kind of don't really understand your situation or question.

[jumper_girl221]

No, they are owned by different entities so not 10%.

We have a condo with 48 units, 12 of which are still owned by the developer. He put 8 of them into 2 llc's to get around the 10% rule.

[spencgr]

Originally Posted by goodguy22222

Can you get around the 10 percent rule of one entity owning more then ten percent of units in a condo community. By putting units in other family members names such as your children and have tax bills mail to you or would that be fraud. I live in a condo and the units have been finished for over 6 years. The developer kept over ten percent of the units as rentals he has the tax bills mailed to his development company but has put some units in his childrens names this way he says they can say not more then one entity owns more then ten percent for getting mortgages is this fraud and I sell my unit can I get in trouble if they say no more then ten percent is not owned by one entity? I'm worried I could get in trouble because I know.

It is not illegal to own more than 10% of units. It is a guideline that lenders set; and they usually will not finance units if someone owns more than 10%.

That being said, in your case, the units are technically owned by different people.