Leni Cummins discusses the issues condominium boards face when buyers use LLCs, trusts, and single-purpose entities in Habitat Magazine's Habitat Weekly newsletter, "When the Buyer Is an LLC, Not a Person." Condominium boards often find themselves in a difficult position because, unlike co-ops, they have no authority to approve or reject a buyer. Their only lever is the right of first refusal, which would require the condominium to purchase the unit itself.

LLCs and other single-purpose entities may not have two or three years of tax returns or meaningful assets, creating challenges if common charges go unpaid. Managing agents may treat an application as incomplete unless the beneficial owner provides additional documentation or enters into an agreement that protects the condominium, such as a personal financial guarantee, funds held in escrow, or an occupancy agreement.

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