Philadelphia residents who have been victims of deed fraud now have a new recourse to reclaim some of their losses, thanks to a recent legislative development in the city. A law passed aims to assist those who have been wrongfully deprived of their property by fraudsters. As reported by the City of Philadelphia's website, the law now allows victims to get a refund of the Realty Transfer Tax that was paid on the fraudulent transaction, which is a step toward mitigating the financial impact of such crimes.
For far too long, perpetrators of deed fraud could not only disrupt lives but also pocket funds from illegitimate transactions, further compounding the injury to those affected. However, with this change, if a court establishes that your property was taken through fraud, you are now able to potentially recover the money paid in tax by the criminal. To be precise, only the person who paid that tax could request a refund, even if that person committed fraud under the old statute, but now victims have the avenue to request those funds back, the City of Philadelphia explains.
The legislation sets certain criteria for eligibility. To qualify for a refund, the property must have been stolen by recording a fake deed, a judge must have ruled the deed to be fraudulent, and a court order must be issued that voids the fake deed. Additionally, the court order must explicitly direct the Department of Revenue to issue a refund to the victim, and the Realty Transfer Tax must have actually been paid on the fake deed. Victims are entitled to the full amount of the Realty Transfer Tax paid, except for the portion that was remitted to the state, which can help to slightly offset the sting of legal expenses and other related costs in seeking justice.
Victims who have successfully fought their cases in court can apply for the refund by obtaining a certified copy of the court order voiding the fraudulent deed, filling out a refund petition form, and mailing these documents to the City of Philadelphia Department of Revenue. There's a statute of limitations for this process, as claims must be filed within three years from the date the court issued its order. Processing the refund is expected to usually take six to ten weeks. For those questioning how to begin or who require further assistance, they can reach out directly to the Department of Revenue or seek legal advice, the city's information page states.
