{"id":4632,"date":"2023-09-25T20:51:27","date_gmt":"2023-09-25T20:51:27","guid":{"rendered":"https:\/\/frankbuysphilly.com\/mv-realty-files-for-bankruptcy\/"},"modified":"2023-09-25T20:51:27","modified_gmt":"2023-09-25T20:51:27","slug":"mv-realty-files-for-bankruptcy","status":"publish","type":"post","link":"https:\/\/frankbuysphilly.com\/mv-realty-files-for-bankruptcy\/","title":{"rendered":"MV Realty files for bankruptcy"},"content":{"rendered":"
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Right-to-list agreement firm<\/a> MV Realty<\/strong> has filed for Chapter 11 bankruptcy in 33 states. The story was first reported by CBS News<\/a><\/strong>. <\/p>\n MV Realty currently faces lawsuits in multiple states for allegedly misleading consumers and homeowners. In addition, the Florida-based firm has been essentially banned from operating<\/a> in 14 states through legislation.<\/a><\/p>\n MV Realty operated in 33 states and has more than 500 real estate agents<\/a>.<\/p>\n The firm\u2019s legal troubles began in late 2022 when it was sued by attorneys general in Florida<\/a>,\u00a0Massachusetts and Pennsylvania<\/a> over its 40-year contracts. <\/p>\n Under MV Realty\u2019s Homeowner Benefit Agreement<\/a>, the homeowner signs over the right to list their home for the next 40 years to MV Realty in exchange for 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, which is separate from the commission earned by the buy-side agent. <\/p>\n If the homeowner breaks the agreement or decides to terminate it early, they must pay the firm 6% of the appraised value of the home.<\/p>\n Since starting the program in August 2020, MV Realty says it has enrolled more than 35,000 homeowners in 33 states and has paid homeowners nearly $40 million.<\/p>\n Over the past year, the American Land Title Association<\/a> <\/strong>has worked to pass legislation<\/a> at the state level to ban right-to-list agreements, such as those used by MV Realty.<\/p>\n \u201cThe property rights of American\u00a0homebuyers<\/a> must be protected,\u201d Elizabeth\u00a0Blosser, ALTA\u2019s vice president of government affairs, said in a statement. \u201cA home often is a consumer\u2019s largest investment, and the best way to support the certainty of land ownership is through public policy.”<\/p>\n “We must ensure that there are no unreasonable restraints on a\u00a0homebuyer\u2019s\u00a0future ability to sell or refinance<\/a> their property due to unwarranted transactional costs.\u201d<\/p>\n MV Realty did not return a request for comment.<\/p>\n