Another state, another lawsuit against MV Realty

A Florida-based real estate company accused of scamming homeowners is facing more legal hot water in yet another state.

Ohio Attorney General Dave Yost obtained a preliminary injunction against MV Realty of Ohio — along with its founder, Amanda Zachman, and its principal broker, Diana Remar — ordering the company to cease its alleged deceptive practices, according to a press release from the Ohio AG’s office..

The court’s order prohibits MV Realty from engaging in the unlicensed practice of real estate, entering into new exclusive right-to-list agreements, and using non-compliant agreements, the release says.

The company offers homeowners a small amount of cash in exchange for the exclusive right to list their properties for sale at an unspecified future date, with contract durations spanning multiple decades. 

MV Realty would then file a memorandum with the county recorder, creating a lien that ran with the property, rather than the owner.

The lawsuit was initially filed by the Ohio Department of Commerce’s Division of Real Estate and Professional Licensing in February. 

The state alleged that MV Realty’s “Homeowner Benefits Agreements” deceived homeowners by withholding crucial information mandated by Ohio law, such as fair housing language, anti-blockbusting language, a definite end date, and a clear statement of representation, all of which put homeowners at risk. 

This recent court order aligns with legislation recently passed in the state to prevent such agreements and to protect homeowners from deceptive practices. 

MV Realty is now required to abide by the preliminary injunction, with the court warning that failure to comply may result in contempt of court charges. 

A status conference has been scheduled for Aug. 16 to assess the company’s adherence to the injunction and to address any further legal actions.

MV Realty has also been accused in Massachusetts, Pennsylvania, North Carolina and New Jersey of misleading homeowners by obtaining mortgages on their homes without their knowledge.

MV Realty previously denied that liens are initially placed on homes, according to an FAQ posted on a website run by the company. Rather, the site claimed, a memorandum or mortgage is filed on homes to serve as public notice of the agreement.

“In the event the customer breaches the agreement MV Realty has a right to [place] a lien against the home,” the website reads.