Little Oversight, Deals Signed in the Dark: How Speculators Cash In When NYC Homeowners Die Without Wills

Studies show that only about one-third of Americans have an estate plan, which can create a burden for loved ones. In New York City, the stakes are higher for some homeowners who die without a will.

Borough public administrators may rely on neighbors, relatives, and funeral directors that knew the deceased to notify interested parties about the property they once owned. This process can take months or years, leaving room for outside investors known as “speculators,” who place short-term bets on the market, to get involved and push for the sales of deeds below market rate. Understaffed agencies don’t have the resources to vet such deed transfers, opening up the potential for fraud. Lawmakers, court authorities, and city agencies have failed to safeguard such estates, as they cannot fully understand which properties lack an estate plan and where heirs might be vulnerable to real estate speculators.

For more information see George Joseph and Samantha Maldonado “Little Oversight, Deals Signed in the Dark: How Speculators Cash In When NYC Homeowners Die Without Wills” The City, July 26, 2023.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2023/07/little-oversight-deals-signed-in-the-dark-how-speculators-cash-in-when-nyc-homeowners-die-without-wi.html