Misrepresentation of Property Income, Expenses, and Leased Properties
In carrying out due diligence for clients considering acquisitions, Protea often discovered misrepresentations (and some of the misrepresentations were very serious) made by brokers, management companies, and/or on-site staff.
Some examples are bogus rent rolls, incorrect lease expiration dates, delinquencies omitted, notices of termination by tenants not disclosed, and many others. Because of these experiences, Protea’s staff is extremely detailed and conservative in carrying out due diligences for prospective purchasers.
