Karl forges ownership documents to a non-resident property owner, borrows against the property. This scheme is best described as?

• A. Air loan
• B. Property flipping
• C. Fraudulent sale
• D. Unauthorized draw on home equity line of credit

Answer: (C)

This describes a deceptive conveyance used to obtain funds by misrepresenting who owns the property. Karl forges ownership documents to make it look like a non-resident owns the property and then borrows against it. Because the ownership claim is false and the loan relies on that fake ownership, the scheme centers on a fraudulent sale—creating or pretending a transfer of title to facilitate borrowing. It’s not simply an unauthorized draw on a line of credit, which would involve someone with legitimate access; nor is it a legitimate property flip, which implies a real, authorized transaction. The forged transfer to obtain a loan is the defining feature, making fraudulent sale the best description.