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Hey Brownstoners,

I got some great advice here the other day, so I’m back for more.

I’m wondering if you guys can weigh in and tell me if you think this is shady or not:

A married couple bought an apartment in the condo building I’m looking to buy in (new construction) a few months ago and decided after living there for a month or two that it was too small for their need. They worked something out with the sponsor and moved into a larger apartment in the same building. Then, after a couple of months, they decided this 2nd apartment was ALSO too small for their needs. So, they once again made a deal with the sponsor to move into yet another apartment in the building which is considerably larger. They were able to get more money from their lender in each scenario to cover the price difference.

They are still wiating to move into the 3rd apartment, as some final fix-ups are being completed. Meantime, I happened to be shown the apartment they are currently living in by the sponsor’s agent and fell in love with it.

I’m very, very close to bidding on it, but the sponsor is treating this as a new construction sale. It is not, in other words, being sold by the current apartment owners to me, but by the sponsor to me.

Is this shady at all? Should I still have to pay transfer taxes and the other fees associated with a new construction sale, or should this be a resale from the current owners of the apartment?

As a note, the sale was officially recorded in July of this year, so it’s not as if it’s not public knowledge that the unit was bought and closed on by the current occupiers.

I hope this all makes sense! Very complicated situation!

Thanks for your help,
PV