NJ Class Action Accuses Closing Agent, Title Insurers Of Clipping Homeowners With Inflated Recording Fees

The Philadelphia Inquirer reports:

• Title insurance companies and their agents charged thousands of New Jersey home buyers more than allowed by law to record deeds and mortgages, according to a lawsuit filed in federal court in New Jersey. Hundreds of thousands of buyers would be reimbursed if the suit, filed last month, succeeds, Esther Berezofsky, a lawyer in the Cherry Hill office of Williams, Cuker, Berezofsky, estimated yesterday.

• "Initially, we thought it was just a single occurrence of overcharging. Then we started investigating, and we discovered it was rampant," said Berezofsky, whose firm worked with O'Conner, Parsons & Lane, of Westfield, N.J.

• The 50-page lawsuit details eight cases of buyers who paid higher fees at settlement than the settlement agents paid to the county recording offices. The lawsuit alleges that settlement agents pocketed the difference. The lawsuit, [...] covers consumers who have bought residential real estate in New Jersey since Jan. 22, 2003.

For more, see Suit alleges title insurance fraud in New Jersey.

New Jersey home buyers who want to know whether they were overcharged fees at closing or who want to provide information can visit www.njtitlelawsuit.com.

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Thanks to Bill Collins of Crossroads Abstract, Rochester, NY for the heads-up on this story. title insurance legal issues