CHARLOTTE — Action 9 has learned of new developments in an ongoing investigation into the real estate company MV Realty, which offered homeowners fast cash in exchange for exclusive rights to sell their homes for 40 years.
Action 9′s Jason Stoogenke teamed up with Channel 9′s sister stations in six other states to investigate those contracts. After that, five attorneys general, including North Carolina’s Josh Stein, sued MV Realty, while at least 16 states introduced bills to ban similar practices.
“Jason, I want to thank you for the attention you’ve put on this MV Realty case because we’ve had complaints come into our office because they saw your stories,” Stein told Stoogenke.
PREVIOUS COVERAGE
- Deceased man’s mother says she had to pay MV Realty $23,000 for contract he signed
- FCC: Embattled realty company, MV Realty, used robocalls to target homeowners
- Realty company offers fast cash, but locks you in to 40-year commitment
- Florida attorney general sues realty company Action 9′s been investigating
- Three states suing realty company Action 9′s been investigating
- Senators call on consumer protection agencies to investigate exclusive real estate listing agreement
- North Carolina attorney general sues embattled real estate company MV Realty
The AARP, Mecklenburg County DSS, the NC Real Estate Commission, NC REALTORS, Stein and other elected officials along with Zillow held a news conference in Charlotte on Wednesday condemning MV Realty’s way of doing business and throwing their support behind North Carolina’s version.
“It is wrong. It is deceptive and has no place in real estate,” said Zillow’s Ryan Patmintra.
Brook Antonio signed an agreement with MV Realty. He hopes Stein’s lawsuit helps other homeowners who signed deals and that the bill becomes law.
“That’s a good move. It’s great.” Antonio said. “Something needs to be done with this company … these companies need to be held accountable.”
The bill passed the House unanimously and is now in the Senate.
MV Realty emailed Action 9:
“MV Realty and our team of licensed real estate agents have proudly assisted over 35,000 homeowners across the country through our innovative Homeowner Benefit Agreement (HBA) program. The HBA program compensates homeowners for the future right to list the home if they choose to sell within the term of the agreement.
“The HBA Program is an innovative option that is first and foremost designed to benefit homeowners by ensuring they are compensated for the exclusive right to list their home.
“If a homeowner decides to sell their home during the term of the HBA, MV’s locally licensed real estate brokers serve the same role as any licensed real estate broker and receive a typical sales commission for its services. This fee aligns with the standard market rate for virtually all residential real estate transaction commissions in North Carolina.
“Notably, there are no liens put on a customer’s property in North Carolina. Consistent with the law, MV files a memorandum that informs third parties of the existence of the agreement between the property owner and MV Realty.
“MV Realty remains confident that the Homeowner Benefit Program fully complies with the law and benefits consumers who select MV Realty as their listing agent. MV Realty has voluntarily and temporarily paused entering into any new agreements.
“We look forward to working with policy makers in North Carolina to address any concerns and continue this valuable program as an option to homeowners across the state.”
(VIDEO: NC lawmakers introduce new bill targeting contracts like MV Realty used)
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