Governor Rick Snyder signed a law making it illegal for private companies to charge exorbitant fees for copies of deeds.
Officials say it's a business model that is a borderline scam.
Homeowners receive an official-looking letter, but it's meant to charge you for something you can get for little to no cost.
Wayne County Register of Deeds, Bernard Youngblood, describes this letter as a "Borderline scam, if you will."
It is something he has seen for years.
Companies seek out new homeowners and then send them a letter, stating they need to pay $83 by a certain date to obtain a copy of their deed.
"A lot of people send hard earned money into this company."
The problem is, it doesn't cost much, if anything, to obtain a copy of your deed.
Youngblood explained, "And this company merely creates a list, sends it to us for the reduced fees ,and we are obligated by law to send the deed back to the company and then they distribute it."
These types of business models are so problematic, Governor Snyder signed a law on April 13 that makes it illegal for companies to send out the letters that look like bills.
Judy Barker is the president of the Grosse Pointe Board of Realtors.
"I started thinking 'Why does anybody need to do this," she said. "Why are there people that are actually spending the money."
She explained when you buy a home, you will receive a copy of your deed in the mail after 4 to 6 weeks.
"Maybe we can prevent a few people from spending $83 for something that they're going to get anyway," she added. "You call your title company, you call the realtor that assisted you. You need to call somebody else. Do not respond to this particular mailing that you may get."
The letter states the company is not affiliated with a government agency and that it isn't a bill.
"But it is at the very end of the letter and if you don't read the whole thing the you're going to think 'whoa wait a minute.' But you will think what will happen if you don't pay the $83," Barker said.
Now that it is illegal for companies to send those letters to homeowners in Michigan, if you receive one, contact the state Attorney General's Office.
