Mike's been friends with Tim since college. They often work together: Mike flips houses and Tim's an appraiser that he uses frequently. It works out great for both friends and Mike definitely gets a better appraised value on the flips Tim handles. For every appraisal Tim handles for him, Mike gives him a $100 gift card. In what illegal practice does it sound like they're engaging?

Question

Social Studies

Rodrigo Clarke

20 August, 15:05

Mike's been friends with Tim since college. They often work together: Mike flips houses and Tim's an appraiser that he uses frequently. It works out great for both friends and Mike definitely gets a better appraised value on the flips Tim handles. For every appraisal Tim handles for him, Mike gives him a $100 gift card. In what illegal practice does it sound like they're engaging?

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Answers (1)

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Laney Smith · Answer 1

Falsely inflating appraisals

Explanation:

As seen from the scenario, as Mike and Tim are friends, Tim tends to increase the appraisals for houses which are being flipped by Mike. This is an illegal activity as discrimination is being made and more money is taken from the customers than actually should be taken. Both are looking for their benefits and hence, tend to engage in a kind of illegal activity. Tim should have kept been fair in raising the appraisals.