CHARLOTTE — MV Realty is facing numerous investigations in several states across the country, but the embattled real estate company will be able to continue some of its operations in North Carolina after the state supreme court put a hold on a previous ruling.
The North Carolina Supreme Court last week issued a stay of a lower court’s injunction against the company.
MV Realty has been under scrutiny for roping homeowners into contracts that gave the company exclusive rights to sell their homes. Some of the contracts followed homeowners for 40 years, even if they died. If the home was sold through a different realty company, MV Realty would put a lien on the home.
Homeowners told Action9 that MV Realty’s contracts made it difficult for them to refinance or use their built-up equity. Many homeowners called the deals “predatory.”
PREVIOUS COVERAGE:
- Senators concerned about homeowners stuck with MV Realty contracts
- Action 9 investigation sparks new NC real estate law
- Support grows for legislation Action 9 investigation sparked
- North Carolina attorney general sues embattled real estate company MV Realty
- Realty company Action 9 has been investigating temporarily stops contracts
The court’s decision means the company can proceed with its operations in North Carolina at least until the lawsuit is over.
Two Supreme Court justices dissented, saying the decision could now put homeowners in an “untenable situation of paying a potentially illegal fee to sell.”
Justice Allison Riggs wrote, “Currently, over 2,000 North Carolina homeowners do not enjoy free and unrestricted use of their property because MV Realty’s enjoined ‘agreements’ are clouding the title on their property.”
The court didn’t give a reason for granting the stay of the injunction, but Riggs wrote that “the practice of granting near-automatic stays creates numerous problems ... including masking the unconstrained discretion exercised by this court, creating confusion for litigants as to the proper standards for stays, and incentivizing parties to pursue inappropriate interlocutory appeals.”
MV Realty has stopped offering the 40-year contracts, and the company filed a petition for bankruptcy in North Carolina back in September. But the stay on the injunction lets MV Realty issue liens and pursue the contracts that already exist.
Channel 9 is reaching out to MV Realty for a comment after the ruling. We’ll update this article with the company’s response.
(WATCH: NC lawmakers introduce new bill targeting contracts like MV Realty used)
©2024 Cox Media Group
/cloudfront-us-east-1.images.arcpublishing.com/cmg/LH3JSJEF3VBLRJLJQESEAG34AM.png)
