D. A. Sues Pair Over Homestead Forms

Two Nevada residents are the targets of a civil suit claiming that they misled Ventura County residents about filing for homestead declarations and property tax exemptions.

The suit, filed Thursday by the Ventura County district attorney’s consumer and environmental protection division, alleges that Jeremiah J. Donovan and Agnes Costas engaged in false advertising and unfair competition by overcharging residents for services and conducting business under misleading business names.

It seeks a permanent injunction and civil penalties.

The district attorney’s office has been investigating the case since the fall of 1993, when 12 residents complained that Donovan and Costas sent them homestead declaration forms for a charge of $25 without telling them that they can receive an automatic exemption.

A homestead declaration protects a person’s interest in a residence if he or she is sued.

During its investigation, the district attorney’s office said, it found 400 more residents who had paid Donovan and Costas for the forms.

The suit alleges that Donovan and Costas charged extra for certain services, failed to properly inform residents about the process and used business names that were misleading, such as State Recording Service, Document Center and Document Service Center.

Under state law, companies that charge residents to prepare the forms must include notarization and recording costs, use a name that makes it clear that they are a private business, and notify residents that they can file the forms themselves and pay $6 to have them recorded.

The suit also said Donovan and Costas required $30 to prepare a claim form for the homestead exemption. Deputy Dist. Atty. Michael Schwartz said those $7,000 exemptions are usually routinely processed when the property is purchased.

A motion for a preliminary injunction is set May 16.