Monday, October 24, 2011

Homestead Exemption Scams

Many tax jurisdictions give you a small break on your property taxes, called a homestead exemption, for the house that you actually own and live in. You have to file for the homestead exemption to get it, but it's typically a simple form that you can download for FREE off the Internet from your Appraisal District website, such as http://www.TAD.org.

Scammers will try to get you to pay them to send you the form, and to file it out for you. Right after closing on the purchase of a home, buyers may get a mailing from the "Homestead Recording Service", with an impressive downtown address. It contains an official-looking form titled, "Designation of Homestead Request Form". In bold it says:

Property Record Date: 10/05/2011 (or whatever date your property deed was recorded)
Our Records Show Filing: None

It seems official, because they know the date you bought the house. That's public information and anyone can get it.

If that doesn’t convince you, the reverse side of the form is completely filled in with the relevant text from the Texas Constitution and the Texas Property Code about homesteads. The form goes on to say, in all caps, "YOU MUST USE THIS FORM OR WE WILL NOT PREPARE YOUR DESIGNATION OF HOMESTEAD."

You're instructed to include a $35 fee to get them to file the paperwork to declare your home a homestead. But this may not even be the same thing as applying for a homestead tax exemption.  Don’t fall for it!!

In Tarrant County, you may get an application form from the appraisal district office or http://www.tad.org/Webpages/homestead_exemption_request.cfm or call (817) 284-4063 to have an application mailed to you.  There is absolutely no fee or cost to receive an application from Tarrant Appraisal District, or to file an exemption application with Tarrant Appraisal District

If you have questions about exemptions or property records, or if your mailing address is incorrect, contact Tarrant Appraisal District's Exemptions  Department at 817-284-4063