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Almost sounds like a money-laundering scheme to me. If there's a large difference between a unit's purchase price and its selling price without any obvious reason for the difference, it could be a way of washing money or funneling money to the putative owner of the unit.
It could also be a way of goosing up the unit's price for comparable checks or loan collateral. This happened a lot during the 2008/2009 real estate market meltdown. Units would flip-flop between the same two owners, but each time the price would go up. Then it could be used as collateral for larger mortgages and other real estate-backed loans.
If you can, try to find out more about these transactions or speak to your co-op's attorney
That's an interesting question, Pooh. It it turns out to be true, it exposes the board to a whole new level pain - abrogation of the board's fiduciary responsibility to the shareholders.
Imagine a board needing to tell shareholders that an apartment the co-op bought for $500k is now worth only $400k when it needs to be sold to raise a large amount of cash.
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