What is kiting?
Kiting happens when a condo owner pays the assessment on one unit using the proceeds from selling another, essentially shuffling funds between properties in a way that can mask an underlying cash shortfall.
Why does kiting matter?
This pattern can obscure a genuine financial problem until it’s much harder to untangle. Boards that notice payments arriving in unusual patterns tied to property sales are usually right to look a little closer.
When You’ll Run Into This
This term mostly surfaces in financial reviews or audits where payment patterns raise questions worth investigating further.
Legal note: this is general information, not legal advice. Rules and requirements vary by state and by community, so it is worth checking with your association’s attorney to get an accurate answer for your specific situation.
