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Homeowners Beware!

An old promotion aimed at homeowners is making a comeback in the Houston area.

A few years ago, homeowners were receiving mailers from State Recording Service, with an Austin return address. Consumers could easily mistake these official looking documents as State notification and many paid the $25 fee for designation of homestead.

This promoter is based in Arizona but has a private mail drop in the Texas Capitol. The company was forced to alter its method of business after the Attorney General of Texas won a judgement last year in which it claimed the company was trying to pass itself off as a government agency.

The notice to consumers says “Our records do not indicate that you have filed a designation of homestead. To do so would cost $25.” But, the real catch, according to the Harris County Appraisal District, is that most homeowners do not even need to file the form, unless they are being sued for the homestead. The designation is not required to get a homestead exemption.

The revised forms explain that the State Recording Service is not a state agency. Reports to the BBB indicate that many consumers are misled into believing this company is a commercial business under state contract. The AG’s office has re-opened its investigation and consumers who have paid the $25 are entitled to refunds.