Summary
One of the most high-profile ways Black people lose wealth is due to tangled titles. A “Tangled Title” is a property title without a clear, legal document expressing future ownership when the owner dies. The property becomes vulnerable to partial ownership claims and partition sales. In some cases, heirs do not realize they own property.
Exact estimates of Black land loss are few, but the Pew Trust estimates that $1.1 billion was lost to undervalued property in Philadelphia. Another estimate put the lost wealth due to tangled titles at $80 billion. Many cities and states do not track tangled titles or deed theft. A famous paper on Black land loss calculates the total figure at $326 Billion (2020 Dollars) between 1920-1997. (American Economic Association)
Homeownership is the single best means of achieving wealth and financial stability in society. Zillow estimates the total residential real estate wealth in the US is valued at $55 trillion dollars in 2025. Most middle-class and poor people’s wealth comes from owning real estate. Homeownership is so important that the government subsidizes ownership through tax deductions. Your tax dollars are helping others build wealth, so why not you?
A tangled title is when there is no clear legal ownership of a title to a property. Tangled titles are a subset of Heir’s property. Heirs’ property is property informally passed down without a will or estate plan. When property is passed, each heir has an equal claim; they are considered “tenants in common” by default, and further descendants also have a claim. Each new “owner” clouds ownership and may have the right to force a sale. Two or three generations without a will or clear title create Tangled Titles.
Heirs’ Property and Black Land Loss: A Hidden Threat To Generational Wealth (Newsone)
The real estate industry is behind the exploitation of tangled titles and deed theft that take land from Black communities and the poor. The real estate profession is a tough, competitive workplace, dominated by free-market ideas and largely unregulated. They are quick to profit from other people’s misfortune. Almost anything goes if you can make a buck. And thanks to large political donations, the industry is free to perpetuate many of our current housing problems.
The African American community can learn a great financial lesson from tangled titles and deed theft. Real estate continues to be the best way to build wealth. We need to be more financially knowledgeable and responsible when it comes to real estate. We need to actively manage our financial future.
Tangled Titles
Tangled titles are property titles without a clear owner. Tangled titles occur when the title holder passes away, and the relative’s name is NOT on the deed. The heirs continue to live in the home but never assume title. They have an interest in the property but no clear legal ownership.
A second way title ownership can become clouded is through a rent-to-own agreement. Renters have fully paid off the property, but the owner never transferred the title.
A third tangled title problem is deed theft. Deed theft is the illegal transfer of a title without the owner’s or heir’s consent. Tangled titles are especially vulnerable to deed theft.
Tangled tiles are governed by heir’s property laws. Laws that determine ownership when the title holder has not clearly expressed future ownership. Heirs’ property laws were created to handle this situation.
The Philadelphia Legal Assistance offers a great explanation of tangled titles (PLA)
Heirs’ property
In response to Tangled titles, legislators passed Heirs’ property laws. Heirs’ property is property informally passed down without a will or estate plan.
To solve the problem, the courts consider the owners “Tenants in Common” with each new owner having a proportionate claim to the property. Basically, when property is inherited without a will, each heir has an equal claim, and further generations own additional subdivided shares.
Heirs’ property claims are settled in court under a process called probate. Probate is a legal process that takes place after someone dies with assets. Probate validates the person will, inventories all assets, pays off debts, taxes and fees, and distributes the remaining assets.
Probate cost estimates for clouded ownership can be anywhere from 3%-10%. The cost of disputed ownership claims can be as high as 25%.
Heirs’ Property and Its Effects on Black Land Ownership in Cities (National League of Cities)
Keeping wealth in the family: The role of ‘heirs property’ in eroding Black families’ wealth (EPI) – Leah Rothstein wrote,”Just Action” with Richard Rothstein (The Color of Law)
Deed Theft
A related issue to tangled titles is deed theft. One of the worst examples of unequal power in the real estate and legal system. Deed theft is a major problem in the Black community. Because of the long history of racism in the US, African Americans have had unequal access to the court and financial systems to prevent deed theft.
Lax ethical standards in the real estate industry have enabled unscrupulous investors to prey on vulnerable owners. Both the legal system and the government have been slow to react to the challenge. The real estate industry has long been a major contributor to local political candidates.
“Brooklyn homeowner freed from Rikers, but fight for her Bed-Stuy brownstone isn’t over” (Amsterdam News) and “Bed-Stuy standoff leads City Hall to take critical step to protect residents from deed theft” (Amsterdam News)
The Real Estate Industry
Real Estate “investors” are behind many of the problems with tangled titles. Real Estate investors have long exploited tangled titles through “partition” sales. So how does it work? Investors locate partial owners. They offer to buy the owner’s share at below market rates. The investors advertise and solicit widely. They actively research tangled titles.
Partial owners in low-income neighborhoods often face financial pressures such as unpaid taxes, utility bills, or maintenance costs. They may reside thousands of miles away or have no interest in the property. Real Estate investors accumulate shares in a property with the goal of forcing a sale and “flipping” a property.
Here is a great inside look at how the deed theft industry works. The Speculator Bros Ripping Off Heirs and Evicting Tenants Across NYC (The City)
When I lived in Fort Greene and Bedford-Stuyvesant, our area was flooded with real estate speculators. Phone calls, leaflets, and door-to-door harassment. The money is that good, and that easy in real estate.
Impact on Black Wealth
Just to restate, no one captures the full financial impact of tangled titles on Black land loss. However, the Union of Concerned Scientists has estimated the value of Black land loss at $326 Billion since 1920 (USC) and (AEA). Fannie Mae estimates the value of Heirs’ property in 2023 as $32 billion dollars (Fannie Mae).
The Pew Trust, in 2021 study, estimates that there are more than 10,000 tangled titles in Philadelphia with a net worth of $1.1 billion dollars (Pew Trust). Others have documented the “The devaluation of assets in Black neighborhoods: The case of residential property” (Brookings)
Government Programs
Local, state, and Federal governments have been slow to recognize the problems of tangled titles and deed theft. Governments have reacted passively to the problem. Some governments see actively fixing titles as outside their responsibility, given tight budgets. Other politicians see gentrification as a good thing since it reduces crime and the need for government services.
Almost all government responses refer people to third parties, such as legal aid societies or community organizations, which are already stretched.
No government entity has an active program to clear tangled titles, stop deed theft, or increase the regulation of the real estate industry.
Philadelphia
Philadelphia was one of the first municipalities to identify the problem. How ‘Tangled Titles’ Affect Philadelphia (Pew Trust)—2021, Good but long.
Philadelphia offers resources to help with Tangled Titles. They offer legal resources and referrals. Philadelphia is typical of a municipality that offers support and referrals for fixing tangled titles after they occur, not active programs to prevent deed theft and clouded ownership.
Philly is building a playbook for fixing ‘Tangled Titles’ (Resolve Philly)
Tangled Title Program (City of Philadelphia), Tangled Title Grant Fund (Philadelphia VIP), and Tangled Titles (Community Legal Services)
NYC mayor Mamdani has recently created an office to address mortgage deed theft. Mamdani Pauses NYC Tax Lien Sale, Launches Office to Combat Deed Theft (Realtor.com)
Government Solutions
Philadelphia, Baltimore, and New York City all have programs to help homeowners sort out their titles to their property.
Pew Trust has shared its process for researching the number of tangled titles in a city. How Cities Can Investigate Tangled Home Titles in Their Jurisdictions (Pew Trust)
Model Legislation (Link)
Wills
The most obvious solution to tangled titles is for the property owner to create a will. A will or estate plan is a written, legal document that specifies the owner’s wishes, upon death, for how their property and assets should be distributed. The named become the legal owners of the property.
Many famous people did not leave wills, including Prince, Chadwick Boseman, and Aretha Franklin (USA Today)
Wills are surprisingly easy to create. A basic will takes only five minutes and a witness. You must name an executor. Legal help is NOT required—only planning.
For example, my personal will divides my assets between my children and my wife. It was communicated and accepted via e-mail. No issues.
It is important to note that African Americans in the US do not have wills. Only 28% of Black Americans have a will. (Caring.Com) — 2021
Gallup found that 61% of people with an income above $100,000 have a will, but only 30% with an income below $40,000 dollars have a will. “How Many Americans Have a Will?” (Gallup)
More comprehensive wills can also be more complex. Estate planning can be a technically, financially, and emotionally difficult process for many families. They can involve asset transfers (jewelry, pictures), donations, and set monetary amounts rather than ownership. However, we suggest reading up on wills and using AI rather than consulting legal advice (a waste of money).
You are talking about an uncomfortable conversation and a fair amount of work. But, in the end, it is worth it. Think about what might happen if you did not have a will. You have been blessed with assets that can be passed down. Do you want to cause that many family problems when you are gone?
2025 Wills and Estate Planning Study(Caring.com)
We highly recommend free resources on the internet for creating a will. Do not pay for a will, it is a waste of money.
The probate costs of individuals with undisputed wills is small and can be below 1% of total assets.
Summary
Black wealth is not only lost through unemployment or low wages. It is also lost behind the scenes through tangled titles, forced sales, deed theft, and the erosion of ownership across generations.
The African American community can learn a great financial lesson from tangled titles and deed theft. We need to be more financially knowledgeable and responsible. We need to own property with clear titles. We need to make clear what can happen to the property when we are no longer around. And we need to actively manage our financial future.
The government must actively do more to prevent tangled titles and deed theft. It must step in when necessary to preserve communities and affordable housing. Resolving tangled titles leads to more stable communities.
We, Blackeconomics.com, support the government in actively preventing tangled titles and deed theft. At a minimum, each municipality should collect data on the number of tangled titles, like Philadelphia. No government agency collects deed theft data, but NYC may start. Governments can follow the methodology of the Pew Trust in Philadelphia.
We support the adoption of the Uniform Partition of Heirs Property Law (Uniform Law Commission), which gives descendants more due process in probate court.
We also support more aggressive regulation of the real estate industry to reduce Black displacement. You should be able to stay in the community where you live without fear of being forced to move.
Sources
The topic is hot in the press. Many great writers are covering the topic.
The Speculator Bros Ripping Off Heirs and Evicting Tenants Across NYC (The City) – great look inside at how the deed theft industry works
Baltimore
Pittsburgh