
New Jersey Watchdog Warns Property Owners as Deed Theft and Real Estate Fraud Rise
A New Jersey state watchdog is urging lawmakers to strengthen protections for property owners amid concerns over an increase in deed theft and real estate fraud.
The State Commission of Investigation says scammers are increasingly taking advantage of remote real estate transactions and the widespread availability of property records online to impersonate legitimate owners and fraudulently transfer or sell properties.
Investigators found that vacant properties, seasonal homes and properties belonging to elderly, deceased or absentee owners are particularly vulnerable.
In one case reviewed by investigators, scammers reportedly sold the home of a recently deceased New Jersey resident and then rented the property to unsuspecting tenants. In another, a buyer paid $60,000 to individuals posing as the owners of vacant property.
The commission is calling on lawmakers to consider stronger identity-verification requirements when deeds are recorded, notifications to property owners when ownership records are changed and expanded property-alert systems.
Officials also suggested tighter rules for remote notarizations and additional safeguards to prevent forged signatures and fraudulent property listings.
New Jersey currently does not maintain a statewide count of deed-theft cases, making it difficult to determine the full extent of the problem.