Which of the following is NOT a characteristic of fraud for property?

The option describing purchasing undervalued properties is not a characteristic of fraud for property because it can be a legitimate practice in real estate investment. Investors often buy properties that are undervalued, making use of market conditions, property assessments, and other factors. This activity falls within the normal operational procedures of savvy real estate transactions rather than an inherently deceptive or fraudulent activity.

In contrast, defrauding borrowers in the real estate system, offering incentives for legitimate transactions (which can sometimes mask fraudulent intentions), and manipulating mortgage applications are all tactics typically associated with fraud. These actions involve deception or misrepresentation aimed at benefiting the perpetrator at the expense of the victims, which aligns directly with characteristics of fraudulent activities. Understanding these distinctions is crucial for recognizing and investigating financial crimes, particularly within the realm of property and real estate.