Q&A
Department of Finance's criteria for flagging suspicious deed transfers
0:23:41
·
134 sec
Council Member Crystal Hudson inquires about the Department of Finance's criteria for flagging suspicious deed transfers, particularly those with sale prices far below market value. Colette McCain-Jacques explains their approach to identifying potentially fraudulent transactions.
- The department flags transfers with sale prices significantly below market value
- There is no specific percentage threshold; the system compares to assessed and market values
- The process aims to catch any transfer below market value to prevent missing potential fraud cases
Crystal Hudson
0:23:41
I do have a couple of questions from your testimony.
0:23:44
Just bear with me one second here.
0:23:56
You stated that, some types of recordings that would trigger an additional review are those with a sale price far below market value.
0:24:08
How do you define far below?
Colette McCain-Jacques
0:24:12
Well, if a property is a $1,000,000 and somebody is selling it for $23,000, that's far below.
Crystal Hudson
0:24:21
But is there, like, a a threshold that's, you know, 20% of the value, 50% of the value, or it's just a subjective determination of what might be far below?
Colette McCain-Jacques
0:24:35
Well okay.
0:24:36
So I would say that, if the home is a $1,000,000 and it's being sold for the $23,000, that's more or less like the assessed value opposed to the actual market value.
Crystal Hudson
0:24:53
Okay.
0:24:53
So you use the assessed value to determine what might be considered far below?
Colette McCain-Jacques
0:24:58
Well, we have the assessed value on our, real property report, the Mhmm.
0:25:02
217, and it requires you to put the assessed value.
0:25:06
And, usually, that's the document that people sign when they are purchasing a home.
0:25:12
And when they see that, they're seeing, like, pennies on a dollar, and they might be buying they might be giving the person 50,000 and they see the 23,000.
0:25:23
They're fooled into thinking that they're getting more than what the property is worth because they're not educated that the market value is way higher.
Crystal Hudson
0:25:32
Right.
0:25:33
I guess I'm also trying to to assess even if that same $1,000,000 home is being sold for half a $1,000,000.
0:25:41
That's still I mean, that's 50% of the value.
Colette McCain-Jacques
0:25:44
For us.
Crystal Hudson
0:25:45
Okay.
0:25:45
So is there, like, a threshold or a particular percentage or number that you use in the office to determine what would be a flag?
