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MV Realty barred from offering brokerage services in North Carolina
Problems for embattled company continue to mount
The problems keep mounting for MV Realty.
The troubled real estate company is no longer permitted to offer its brokerage services in North Carolina, WTVD Channel 11 reported.
The North Carolina Real Estate Commission, after a two-day hearing, permanently revoked MV Realty’s authorization to provide brokerage services in the state; the decision came after allegations of MV Realty violating state license laws and rules.
During the hearing, MV Realty’s lawyers claimed the company’s intention to comply with the law and retain its license for standard brokerage activities. The complaints against MV Realty included issues such as unanswered phone calls and emails, problems with property listings not appearing on typical websites, and overall dissatisfaction from customers.
MV Realty originally hit state regulators’ radar after the company was accused of misleading homeowners by obtaining mortgages on their homes without their knowledge.
The company, according to North Carolina Attorney General Josh Stein, paid homeowners a few hundred dollars in exchange for the right to be the listing agent in the event a homeowner decided to sell their home.
MV Realty, under the 40-year contracts, would receive money if the company sold the property, the homeowner canceled the agreement or if the property was transferred in some other way, including foreclosure or a transfer when the owner dies.
The contracts also allegedly permitted MV Realty to obtain mortgages on the homes, unbeknownst to the homeowners.
North Carolina joined Florida, Pennsylvania, and Massachusetts, among others, that sued MV Realty for alleged deceptive, unfair trade practices. The North Carolina lawsuit is still pending.
Although MV Realty ceased offering the program and long-term listing agreements became illegal in the state, the company aimed to continue its brokerage services.
Despite being under investigation by the state, MV Realty continued to collect thousands from North Carolina homeowners. The recent ruling by the Commission prohibits MV Realty from offering any new brokerage services in the state. The company has 120 days to conclude existing business but cannot engage in new brokerage activities.
The Commission clarified that the ruling does not affect the legality of the memorandums attached to homeowners’ deeds under the Homeowner Benefit Program. However, without a broker license, MV Realty is unable to perform brokerage services as outlined in the memorandums.
The decision is subject to appeal, and during the hearing, MV Realty’s attorneys argued that despite some complaints, the company has many satisfied customers.
— Ted Glanzer