One person owning 2 out of 20 units (10%)

Started by RonW7 • 3 replies • 1457 views

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RonW7 (Ohio)
Posts: 122

Posted:

In a community of 20 units, I get a slight degree of heartburn over the idea of one person owning two of those units. Not only does it set up red flags for lenders and make it harder for others to sell, it gives one interested party too much power in the community vote. Is it normal for a boardperson to feel this way? This unit hasn't closed yet, but it will soon and I am just wondering if there are any other concerns that I should have about this.

DouglasK1 (Florida)
Posts: 2,046

Posted:

I'm not sure why this would be a problem. If you want heartburn, read the recent thread from someone who bought into a complex where the president owned 60% of the units.

Escaped former treasurer and director of a self managed association.

RonW7 (Ohio)
Posts: 122

Posted:

Quote:

Posted By DouglasK1 on 07/01/2014 2:09 PM
I'm not sure why this would be a problem. If you want heartburn, read the recent thread from someone who bought into a complex where the president owned 60% of the units.

Ugh... that sucks. Your reply helped me in coping with it a little, though. It's probably nothing to worry about, but it will definitely set up red flags with lenders.

GlenL (Ohio)
Posts: 5,491

Posted:

Yeah they can buy two or they can form shell corporations and buy more. XYZ corp owns one, PDQ corp owns another ABCL corp owns a third, doesn't matter if all the corporations are owned by one person.

Studies show that 5 out of 4 people have problems with fractions

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