New Jersey recorded at least 135 deed-fraud cases from January 2020 through March 2026, second only to Florida, a state watchdog report found.
The New Jersey State Commission of Investigation (SCI), an independent agency that investigates public corruption and fraud, released the 85-page report on Sept. 10. The agency began examining deed fraud in 2024 after the FBI's Newark field office flagged a rise in cases.
Summit-area homeowners have one layer of protection available now. The Union County Clerk's Office offers a free Property Fraud Alert Notification system that flags unauthorized activity on a property's title. The clerk's office posted a reminder about the program on July 29, citing rising fraud statewide. Union County property owners can register online or call 1-800-728-3858.
Deed fraud occurs when someone impersonates a property owner and transfers or sells the property without the owner's knowledge. Victims often face the loss of their home or land and lengthy legal battles. One Jersey City case took six years to resolve, NJ Spotlight News reported.
The scams accelerated during the COVID-19 pandemic, when real estate transactions shifted to remote operations. Fewer face-to-face dealings made it easier for criminals to impersonate legitimate owners and submit fraudulent documents for recording, the SCI found.
The biggest targets include undeveloped land, vacation homes, rental properties and homes owned by older adults. One real estate publication estimated older adults accounted for about 44% of all dollar losses from deed fraud, according to the report. Scammers create fake identification, pose as owners and list properties below market value, pushing buyers to close quickly with cash.
Fraudulent notaries, electronic signatures and wire transfers, often involving limited liability companies, are common tools in the schemes.
Nationwide losses surging
The problem extends well beyond New Jersey. Nationwide, deed-fraud complaints jumped from 9,359 in 2024 to 12,368 in 2025, according to the FBI. Reported monetary losses rose from about $173.5 million to $275 million in the same period, as reported by the Jersey Vindicator.
The FBI cautioned that the 135 New Jersey incidents likely understate the true scope, because many cases go unreported or are categorized under broader fraud classifications, according to the SCI report.
Five bills stalled in Trenton
Five bills that would combat deed fraud are pending in the New Jersey Legislature, but every proposal has stalled. The SCI called for a coordinated approach rather than piecemeal fixes.
The commission recommended requiring real estate licensees to verify seller identities before accepting a listing and requiring notaries to use a centralized online log. The agency also called for allowing property owners to freeze their titles, similar to a credit freeze, and for fast-tracking litigation over fraudulent deeds.
Alert systems have limits
Still, county clerks across New Jersey generally view alert systems as limited tools that allow earlier detection but do not prevent fraud before a deed is recorded, according to the SCI report.
Every New Jersey county except Hunterdon and Warren uses some form of property alert system, but the programs and processes vary widely. The SCI found the state has not built a uniform system to combat the problem.
Only three states, Virginia, Tennessee and Maine, are considering comprehensive measures to address deed fraud, the report found. Five bills sit idle in Trenton.
