New Jersey property owners are increasingly becoming victims of deed fraud, the state’s Commission of Investigation warned in a new report.
Swindlers have been impersonating true owners to take control of their properties, then transferring the titles and recording the deeds to those properties in new names, all before the victims discover the fraud.
The issue has drawn the attention of New Jersey’s legislature, with several bills introduced but not passed. In addition to those measures, the SCI recommends strengthening identification requirements and enhancing alerts to owners when property documents are filed.
“To do nothing continues to expose some of our most vulnerable citizens to the loss, through fraud, of what often is their most valuable asset,” SCI investigators wrote.
The pending bills include:
- A2072, which would require any deed submitted for recording to be accompanied by an affidavit of title;
- A1846/S1611, which expands protections against fraudulent recordings of quitclaim deeds;
- S848, which requires all county recording officers to establish a property alert service to notify owners whenever a lien, deed or other property document has been recorded;
- A5289, which establishes certain protections against deed theft; and
- A4017, which required limited liability companies to disclose ownership information when submitting deeds for recording.
