Mortgage Fraud Red Flags - Real Estate Appraisal Professionals

Purpose:  To help real estate appraisal professionals evaluate whether mortgage fraud is taking place.

This bulletin applies to real estate appraisal professionals

Mortgage fraud is a criminal offence. Participation in mortgage fraud also violates the Real Estate Act Rules. Industry professionals who breach the Rules face strong sanctions, including suspension or cancellation of their authorization. Industry professionals must help prevent mortgage fraud by identifying suspicious deals and notifying authorities.

Appraisal agreement issues:

Other Issues

When you identify a suspicious transaction
The Real Estate Act Rules requires an appraiser to refuse to provide further services to a person who:

Contact the lender and tell them why you are suspicious. Report the results of your review to RECA in writing if the persons involved are other industry professionals (real estate associates/brokers, mortgage associates/brokers or appraisers). Contact the local police or RCMP If you suspect fraudulent and/or other illegal behaviour. 

The Appraisal Institute of Canada also has mortgage fraud information available for its members and the public. Please visit its website at

Related information

Real Estate Act Rules – sections 41(a), s.42(a)(b), 79

Information bulletins

Mortgage Fraud Red Flags
Mortgage Fraud Red Flags – Mortgage Brokerage Professionals
Mortgage Fraud Red Flags – Real Estate Professionals