Sneaky, sneaky developers...

I had a Seller's attorney try something I have never seen attempted before in the context of a residential real estate closing. Seller wanted to split out the cost of a condo between real property and personal property. This was a new condo conversion where there were significant upgrades. Our Buyer's lender didn't allow it but pretty shady. Any thoughts? They only wanted it changed on the HUD-1.

Behind the scenes I think they wanted to cut some separate funds to a construction company rather then take all the income in a lump sum.