Proving Fraud
Types of Commercial Real Estate Fraud
Conclusion
CHAPTER 2 Why Should Fraud Matter to Appraisers?
Striving for Professional Excellence
Legal Precedents
Applicability of a Fiduciary Standard to Appraisers
What Is the Expected “Duty of Care” Owed by Appraisers?
Case Law Concerning Individual Acts of Appraisal Negligence or Fraud
USPAP and Fraud
Current Actions against Appraisers
Future Actions against Appraisers
Conclusion
CHAPTER 3 The Causal Factors behind Fraud
CHAPTER 4 The Need for Factual Verification
The Data Verification Process
Interviewing the Property Owner
Conclusion
CHAPTER 5 Understanding Conflicts of Interest
Conflicts of Interest in the Financial Industry
Conflicts of Interest in the Taxation Sector
Conclusion
CHAPTER 6 Purchase Contract Fraud
Compare the Purchase Price to the Listing
Builder Bailouts
Conclusion
CHAPTER 7 Misrepresentation of Occupancy and Tenancy
Why Verifying Collected Rent Is So Important
Talk to the Tenants
Verification of Future Tenants
Studying Present and Past Rent Rolls
What If the Tenant Is Not There?
When the Landlord Pretends to Be a Tenant
The Best Way to Verify Occupancy and Rents
Estoppel Agreements
Conclusion
CHAPTER 8 Misrepresentation of Property Characteristics
Legality of Use
Availability of Utilities and Water
Property Size
Property Condition
Transferability of Rights or Funds
Tax Credits
Water Rights
Bond Financing
Conclusion
CHAPTER 9 Deceptive Financial Statements
The Numbers Are Too Round
The Numbers Are Too Consistent
Not All Obligated Payments Are Being Made
Revenue That Is Not Related to the Property Is Included
“Pocket-to-Pocket” Rental Income Is Included
Necessary Expenses Are Excluded
Conclusion
CHAPTER 10 Misrepresentation of Buyer or Borrower
CHAPTER 11 Other Ways Appraisers Are Influenced
Previous Appraisal Reports
Misleading Data
Character References
Conclusion
CHAPTER 12 Property Types More Susceptible to Fraud
Vacant Land
Rent-Controlled Apartments
Buildings with High Vacancies
Condominium Projects
Foreign Real Estate
Properties with Title Issues
Conclusion
CHAPTER 13 Federal Criminal Statutes against Fraud
Conclusion