Suit alleges title insurance fraud in New Jersey

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.

For example, Deborah M. Bonanni paid a $120 deed-recording fee and a $300 mortgage-recording fee for the Princeton house she bought for $418,000 in 2006.

Mary Ann Kenny Pidgeon, the settlement agent hired for the closing, paid fees of $80 for the deed and $210 for the mortgage at the county office, according to court documents. Pidgeon did not respond yesterday to e-mail and phone requests for comment.

State law sets the recording fees at $30 for the first page and $10 for each additional page.

The lawsuit, which named 13 corporations as defendants, covers consumers who have bought residential real estate in New Jersey since Jan. 22, 2003.

Representatives of defendants Fidelity National Title Insurance Co., First American Title Insurance Co., and LandAmerica Financial Group Inc. said they would not comment on pending litigation.

N.J. home buyers who want to know whether they were overcharged fees at closing or who want to provide information can visit

» READ MORE: www.njtitlelawsuit.com

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