Ohio AG sues MV Realty for 'shameful business model' to get real estate listings
Ohio Attorney General Dave Yost has sued an Ohio company alleging it has misled consumers with its deceitful practices locking homeowners into a 40-year sales contract in exchange for cash as a “loan alternative.”
Yost’s suit makes Ohio the fourth state to sue MV Realty, which is headquartered in Florida and does business in Ohio as MV Realty of Ohio. Lawsuits are also pending in Pennsylvania, Florida and Massachusetts.
Ohio’s lawsuit is seeking preliminary and permanent injunctions against MV Realty of Ohio, the company’s founder and its principal broker to stop them from negotiating real estate contracts that violate Ohio law. The suit also seeks to stop the parties from practicing real estate without proper licensing. The suit was filed in Franklin County Common Pleas Court.
More:Ohio accuses real-estate firm of deceiving homeowners with listing agreements
What is the suit about?
The lawsuit alleges MV Realty founder Amanda Zachman and broker Diana Remar confuse and mislead homeowners with “Homeowner Benefits Agreements,” contracts that omit crucial information and language required by state law.
MV gives between $300 and $5,000 in cash as a “loan alternative” in exchange for people using MV Realty as their exclusive real-estate listing broker for a given period, usually 40 years.
During that time, if the homeowner lists the property for sale without using MV Realty as its broker or the home is foreclosed upon, or if the homeowner’s heirs try to sell the home or the homeowner wants to cancel the deal, MV seek to be paid 3% of the property value — with both the percentage and the property’s value determined by MV Realty.
More:Delray Beach firm says it has 'innovative' plan, state calls it a scam
“Deliberately tricking people to make money off their homeownership is a shameful business model,” Yost said. “If it’s truly a good deal, all the details will be clearly explained in writing. Ohio doesn’t need to tolerate the defendants’ deceitful practices.”
The defendants also take out a lien on the homeowner’s property, issuing an additional memorandum asserting MV Realty’s exclusive right to list the house and binding the property owner to the terms of the agreement.
Yost is asking the court to put MV Realty out of business.
MV Realty did not respond to an inquiry for comment.
Consumers who have been affected by an MV Realty contract can file a complaint with the Ohio Division of Real Estate and Professional Licensing. Consumers who suspect unfair practices should contact the Ohio Attorney General's Office at OhioProtects.org or 800-282-0515.
Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@thebeaconjournal.com
This article originally appeared on Akron Beacon Journal: Ohio Attorney General sues MV Realty for 40-year misleading agreements
