"To Socrateaser" What exactly does that translate into when the sponsor is offering one percent off the best bank rate for the sale of a condo unit?
Country relating to Question: United States
I don't understand the question. Please restate the facts and any prior answer I have provided. Thanks in advance.socrateaser41037.8726327199
From my understanding when the original developer who built the building or converted the building to a condo may hold onto apartments as investments. What does that mean if the sponsor decides to sell one of their units and let's say is offering one percent off the best bank rate for the sale of a condo unit?
Possibilities:1. Developer needs cash.2. Developer believes that the market has recovered and it's time to sell.3.Developer has held the investments at least one year and so is now entitled to capital gains treatment on sale.4. Developer no longer cares about maintaining a controlling interest in the association board.5. Developer's price is actually 1% or more than the market, so the deal is exactly the same as a sale at market with an institutional Loan.That's about everything I can think of at the moment.Hope this helps. NOTICE: My goal here is to entertain while educating the public about the law. Your positive feedback to the website is appreciated. If you need to contact me again, please put my user id at the beginning of your question ("To Socrateaser"), and the system will send me an alert. Please Click the following link for IMPORTANT LEGAL INFORMATION. Thanks and best wishes!
How would a deal like that be structured? I guess the purchaser would pay the montly P and I. Are there any concerns for the purchaser?
As long as the price and terms are better than then market, then I don't see how this deal would be any different from any other. The main risk is that the buyer is overpaying for the property itself, because there wouldn't be a loan appraisal, if the developer is financing the deal. If the buyer gets an appraisal, then there's no issue, in my opinion.Hope this helps. NOTICE: My goal here is to entertain while educating the public about the law. Your positive feedback to the website is appreciated. If you need to contact me again, please put my user id at the beginning of your question ("To Socrateaser"), and the system will send me an alert. Please Click the following link for IMPORTANT LEGAL INFORMATION. Thanks and best wishes!
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