Avoiding Real Estate Scams in New Jersey

Real estate transactions involve large sums of money and sensitive personal data—prime targets for scammers. Property and mortgage fraud are growing nationwide, with fraudsters recording fraudulent deeds, liens, and other documents against unsuspecting owners.

Below are the most common scams we see in New Jersey—wire fraud, title fraud, fake rental listings, reverse mortgage scams, and high-pressure sales tactics—and ways to spot and avoid them.

Wire Fraud

How It Works

Wire fraud often starts with a hacked or spoofed email or text pretending to be your attorney, title company, lender, or agent. As you approach closing, you might get a message like: “We’ve updated our wiring instructions” or “Call me at this number, I want to change how I want to receive my proceeds.” Always call to check with your title company or attorney and not the number you received this text from to verify. If you follow those fake directions, your funds can be wired to a fraud account and disappear instantly.

Avoidance Tips

• Never trust wiring instructions received by email, text, or unexpected phone call.
• Pick up the phone and confirm all instructions with your attorney or title company using a verified number you got at the beginning of your transaction.
• Treat last-minute changes or urgent requests as red flags—especially close to your closing date.

Title Fraud

How It Works

Title fraud is one of the most common real estate scams in New Jersey and involves the transfer of the title to your property to someone else without your knowledge or consent. It usually works in one of the following ways:

1 – Scammers use stolen or fake ID to pose as legitimate homeowners, taking out one or more mortgages on a property and pocketing the mortgage money, leaving the real homeowner with a mortgage they don’t even know about. 

2 – Scammers register forged documents, allowing them to discharge any existing mortgages and transfer the property to themselves, register a new mortgage and take the money. 

3 – Scammers impersonate as property owners often using stolen Social Security numbers, forged driver’s licenses, and even fake notary credentials. They push for quick, all-cash closings, claim they’re out of the country, and insist on text/email only to avoid live identity checks.

Avoidance Tips

• Safeguard your personal documents and secure your property records
• Don’t give out personal information on the phone, through mail or online, unless you know the person you’re giving it to. Avoid giving out your social insurance number (SIN).
• Don’t sign any document that you don’t fully read and understand
• Periodically, check the Middlesex county clerk office website to ensure the title of your home is still in your name (you can also ask your REALTOR to do this for you).
• Review your credit report every year to ensure there are no discrepancies. You can check your credit score with Equifax or TransUnion. 
• Watch your mail – Identify theft often starts when a fraudster redirects your mail and gets access to your personal information, so make sure to remove mail from your mailbox, pay attention to missing bills or mail and make sure to forward mail when you move. 
• Consider purchasing title insurance
• Enroll in your county’s free property alert service. You’ll get an email if a document is recorded in your name, so you can act immediately. Beware of paid commercials for signing up for property alerts—most counties offer this for free.
• Be wary of sellers who refuse document and ID verification and prefer to communicate only by text/email.
• Question anyone pushing an under-market, “must close now” deal.

💡 Use this link to check your title Middlesex County Public Records Search: Search property records
💡 Middlesex County Property Alerts (free): Enroll for alerts. If you receive an alert for activity you didn’t authorize, contact local police and your county clerk immediately.

Fake Rental Listings

How It Works

Scammers post fake rentals on sites like Craigslist or Facebook Marketplace, often reusing photos from real listings tricking victims into paying deposits or sharing personal information. They steal photos from the internet – often from real homes listed for sale or rent – and price the home below market value. Once you’ve shared your information and deposit, POOF! They disappear, and so does your money. 

Avoidance Tips

• If it seems too good to be true…it probably is. Scammers prey on the very real frustrations of high rental prices in Toronto and post photos of a gorgeous home at an unbelievable price. The hope is that people will get so excited about the under-market price that they’ll move quickly to secure it without doing proper due diligence or taking notice of the red flags. 
• The ‘landlord’ is often out of town – they give details about a sick relative or an overseas work trip
• The ‘landlord’ can only communicate by email – they may claim they have a disability that prevents them from being able to speak on the phone or meet in person.
• They ask for a deposit before you’ve seen the property – deposits should only be paid AFTER you’ve seen the property and have executed a lease. 
• They ask for the deposit to be paid via cash, gift cards or via a money transfer company. Don’t ever send money to a landlord via Western Union. 
• They make excuses as to why you can’t view the property – They’re sick, the keys are lost, they had to leave town unexpectedly… Never rent an apartment or house that you haven’t seen in person (or one that’s been viewed by a trusted REALTOR).

Reverse Mortgage Scams

How It Works

Reverse mortgages allow homeowners to borrow money from the equity in their home, without having to sell it or make repayments until the homeowner moves out of the home, sells it or dies. While there are legitimate reverse mortgage companies in New Jersey, there are also those looking to take advantage of people who need cash. Scammers offer fake reverse mortgage deals, promising cash in exchange for equity. Victims may end up losing their homes or equity.

Avoidance Tips

• Choose your reverse mortgage provider carefully. Ask friends for referrals and read online reviews. 
• Be suspicious if someone reaches out to you offering a reverse mortgage; only deal with companies you research and contact. 
• Be wary of reverse mortgage companies that want you to transfer title (that’s not required) or ask for sensitive financial information. 
• Don’t pay upfront fees for information or applications

High-Pressure Sales Tactics

How It Works

Beware the questionable home service professionals and REALTORS who use high-pressure tactics, often playing on emotions, to force seniors into quick decisions. Take your time, consult with trusted advisors, and never rush into agreements under pressure.

Avoidance Tips

• Verify professionals: Work only with licensed, reputable agents, lenders, and inspectors.
• Seek legal counsel: Speak with a New Jersey real estate attorney before major commitments.
• Research extensively: Vet offers and companies; keep asking questions until you’re comfortable.
• Protect personal info: Don’t share sensitive data by phone or email unless you initiated the contact and verified the recipient.
• Know your rights: If renting, understand New Jersey tenant rights and required disclosures.
• Read contracts carefully: Review every document; consider legal advice before signing.
• Stay informed: Keep up with common scams and new variants.
• Trust your instincts: If it seems too good to be true—or feels off—walk away.