Which method is associated with contract kiting fraud?

The method associated with contract kiting fraud is one where a low-priced contract and a higher-priced contract are created for the same property. This practice involves using two different contracts to manipulate the perceived value of a property. The lower-priced contract may be presented to a lender to justify a smaller loan amount, while the higher-priced contract is used to facilitate a larger loan amount from another lender. This discrepancy can mislead lenders into believing they are financing a legitimate sale at market value, allowing the scammer to extract more funds than the property is actually worth.

Engaging in this dual-contract scheme can help the perpetrator cover up the true nature of the transaction. It can provide the appearance of legitimate market value while defrauding lenders for additional funds. This manipulation is at the heart of kiting fraud, as it exploits the system by providing conflicting information to financial institutions.