The seller must disclose "all known material facts". It is possible the previous owner was not aware of the situation.
Many of the documents that are signed during purchase do advise the "buyer" to satisfy themselves as to many issues that might effect the property.
This type of information will be uncovered regardless, when it comes time to try to get a loan. As you found out, you cannot get a loan when a property has too many units owned by the same person.
Perhaps this could change in time? If not, when you sell you can indicate that it must be a cash sale due to the loan restrictions you have discovered.... more