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Recent Investigation, Prosecution and Legislation Regarding Fraudulent Deeds
New York City, particularly gentrifying areas of Brooklyn, Harlem, and Washington Heights, are seeing an upsurge of deed theft. Attorneys, architects, title companies, real estate brokers, agents, contractors, developers and construction managers need to be alert to this potential issue when blocks of properties are assembled for development in these neighborhoods.
There have been complaints of fraudulent deeds received by the New York City Department of Finance (DOF) over the years. Families, particularly families of color, were forced to navigate the judicial system to try and recover properties on their own, with only a few able to afford lawyers to represent them. Moreover, these unfortunate victims of theft were required to post a bond as a precondition of litigating to recover their homes from the thieves. This impediment made recover of stolen homes more difficult.
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