MV Realty Files For Bankruptcy After 33 States Investigate Them For Hard Selling NTRAPS To Unsuspecting Seniors

MV Realty
AGs in 33 States Are Investigating MV Realty.

MV Realty has filed for Chapter 11 bankruptcy in 33 states. The story was first reported by CBS News.

The company is currently faces lawsuits in multiple states. State AGs are investigating the company for allegedly misleading consumers and homeowners. In addition, the Florida-based firm has also been essentially banned from operating in 14 states through legislation.

The real estate group operates in 33 states and has more than 500 real estate agents.

State Attorney Generals in Florida, Massachusetts and Pennsylvania began suing MV Realty in 2022 over its 40-year listing contracts.

The realty company’s Homeowner Benefit Agreement requires the homeowner to sign over their right to list their home for the next 40 years to MV Realty. In exchange, The company pays the homeowner a cash payment ranging from $300 to $5,000. This means that if a homeowner decides to sell their house sometime in the next 40 years, the company is entitled to list the home for a 3% commission. 

This also means that homeowner must pay MV Realty 6% of the appraised value of the home if they break or terminate the agreement.

The company started the program in August 2020. Since then it has enrolled more than 35,000 homeowners in 33 states. It has also paid homeowners nearly $40 million.

The American Land Title Association has also been working quietly to pass legislation at the state level to ban these agreements. 

ALTA’s VP of Government Affairs Elizabeth Blosser said in a statement,

The property rights of American homebuyers must be protected. A home often is a consumer’s largest investment and the best way to support the certainty of land ownership is through public policy. We must ensure that there are no unreasonable restraints on a homebuyer’s future ability to sell or refinance their property.

Read More Stories Like This On MFI-Miami

Also, Check Out This Article About MV Realty:

NTRAPS: The New Real Estate Scam Targeting Grandma

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