The state of Ohio is suing realty broker MV Realty of Ohio, with Attorney General Dave Yost saying that the business deliberately tricks people using confusing and misleading “Homeowner Benefits Agreements.”
In a release, the attorney general said that the agreements are offered as a “loan alternative” where the company provides cash in exchange for the homeowner using MV Realty as its exclusive real-estate listing broker for a given period.
If during that time the homeowners list the property not using MV Realty, the home is foreclosed on, the homeowner’s heirs try to sell the house or the homeowner just tries to cancel the deal, the company takes out a lien on the property, seeks 3% of the property value and issues a memorandum asserting their exclusive right to sell the house, binding the homeowner to the agreement.
However, the agreement leaves out several vital state-mandated details, according to the lawsuit, including the name of the real estate agent, required fair housing language, required anti-blockbusting language, a clear statement of the end of the agreement and a clear statement of representation.
According to the lawsuit, leaving out these details make using the contracts to practice real estate illegal.
In addition to the agreements, the lawsuit said that MV Realty founder Amanda Zachman, who lives in Florida, is not licensed to sell real estate in Ohio, but is doing so through the company and its real estate broker Diana Remar.
The attorney general said that the state is asking the court to put MV Realty out of business, and asked any consumers who have been affected by a contract with the company to file a complaint with the Ohio Department of Commerce’s Division of Real Estate and Professional Licensing.
About the Author