Legal Question in Real Estate Law in Minnesota

Seller Concessions and Subleasing

Let's say I am limited to 3% seller concessions due to my LTV and I'm trying to maximize my builder's incentive. Can a home builder sublease my apartment from me so I can avoid having to pay the termination fees in addition to giving me the full 3% seller concession? In other words, does the sublease count against the seller concession?


Asked on 3/06/06, 5:24 pm

1 Answer from Attorneys
Steven Vatndal Law Office of Steven J. Vatndal

Re: Seller Concessions and Subleasing

I need more details for significant reply. However, if "LTV" is "loan to value" and you are talking about a concession limit imposed by a bank as part of loan terms, the sublease arrangement (which I assume would be for less than FMV) may constitute fraud. E-mail me if you want to discuss further.

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Answered on 3/07/06, 7:57 am


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