Slander of title is a false and malicious statement made in disparagement of a person’s title to property that causes the property owner special damages (losses). It is a tort action with stringent pleading and proof requirements.
In a slander of title action the plaintiff must prove that the defendant made a false and malicious statement, disparaging property in which the plaintiff holds an interest, and causing special damages.
In states that recognize a slander of title claim or cause of action, some courts have held that a plaintiff who sues for slander of title must plead and prove the loss of a specific sale—and that a plaintiff who does not meet these pleading requirements may not recover damages.
In New Jersey, slander of title is recognized as a cause of action. To establish a case for slander of title, a plaintiff must demonstrate that the defendant made a false statement that was malicious and disparaging to the plaintiff's property interest, and that this statement resulted in special damages, such as the loss of a specific sale. The burden of proof is on the plaintiff to show that the disparaging statement was not only false but also made with malice, which means with knowledge of its falsity or with reckless disregard for the truth. The requirement to prove special damages typically means that the plaintiff must be able to show an actual monetary loss that directly resulted from the slanderous statement, such as the failure of a potential sale or transaction. New Jersey courts require strict adherence to these elements for a successful slander of title claim.