Faust warns homebuyers of deed scam

BY WILLIAM MOORE wmoore@gulfcoastnewspapers.com
Posted 7/8/13

BAY MINETTE – Baldwin County revenue commissioner Teddy Faust is warning new home buyers of a scheme to separate them from their money.

When someone buys a house, part of the closing process is getting a deed for the new property. But a company …

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Faust warns homebuyers of deed scam

Posted

BAY MINETTE – Baldwin County revenue commissioner Teddy Faust is warning new home buyers of a scheme to separate them from their money.

When someone buys a house, part of the closing process is getting a deed for the new property. But a company is taking advantage of most people’s unfamiliarity of real estate transactions.

Since at least late last year, Baldwin County homeowners have been getting letters in the mail marked “deed processing notice.” The official-looking document contains the pertinent information about the property transaction – the date, the sale price, the parcel number, when the house was built, how many square feet. The letter instructs the homeowner to send an $83 document fee to the Wilmington, Del., company for a copy of the grant deed.

“It’s not illegal, but it’s a scam,” said Faust. “More and more people are coming in and saying they are getting the letter.

“All these folks are doing is printing a copy of the deed off our website and then sending that to the homeowner. It’s crazy, but people are actually doing it.”

The letters from Property Transfer Services are carefully worded. In several different locations, it states that PTS is not associated or affiliated with any government agency or the county. At the same time, the letter describes the importance of having a copy of the property deed. “This is not a bill,” it reads. “This is a solicitation; you are under no obligation …”

“We started seeing it about seven months ago,” said Faust. “At the time, I went and showed it to the probate judge.”

The problem is; no laws are being broken. PTS is only offering a copy of a deed for a fee. When a house sale is closed, the title company sends out a copy of the deed after it is recorded with the county. PTS is taking that recording information and sending out letters, fishing for customers. Some people will send in the $83 not knowing their real deed is probably already in the mail.

“If you bought a house in Baldwin County last week, it would go on the website this week,” said Faust. “You could go print (the deed) off yourself and it would only cost you paper and ink.

“We’re trying to alert people and the title companies of this.”