This looks a lot like a person trying to avoid estate tax. Hiding transfers of large sums in transactions is an old trick that rich folks try to use to transfer wealth while avoiding estate tax.
Transfers among relatives tend to draw scrutiny.
You also might want to look into the details of the Duke Cunningham case and see if his sale of overpriced house violated laws other than the obvious influence peddling charges.
P.S. – The relative would overpay by 5-6 K per year in property taxes.
