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Kalamazoo County clerk warns homeowners of realty company offering fast cash

Posted at 6:48 PM, Jan 26, 2023
and last updated 2023-01-27 11:06:23-05

KALAMAZOO COUNTY, Mich. — The Kalamazoo County clerk is warning homeowners to be cautious of a real estate agency’s benefits program.

MV Realty offers something called a Homeowner Benefit agreement, it offers you cash upfront in exchange for the exclusive right to list your home if you decide to sell.

According to the clerk, the deal seems sweet, but you should read closely before signing.

“What sets this agreement apart is that they offer fast cash anywhere from $300 to $5,000, upfront for an exclusive listing agreement,” said Kalamazoo County Clerk Meredith Place.

Essentially, the reality is sliding you fast cash in exchange for a lifetime commitment.

Per the agreement document, if you ever decide to sell your home you have to list with MV Realty. Place says it has the potential to last up to 40 years.

“They typically take a 6% commission and if you do not want to list your property with MV Realty or you'd like to separate yourself from the agreement, you're looking at a stiff penalty of upwards to 3% of the home's value,” Place said.

She also said the company is currently facing civil lawsuits filed by attorneys general in Florida, Massachusetts, and Pennsylvania.

“Individuals who are trying to remove themselves from the agreement are having a hard time getting out of it without paying that stiff penalty,” Place told FOX 17.

The clerk says out of 30 agreements in Kalamazoo county, there are two records of termination.

The county is working to notify Michigan Attorney General to look into the company.

MV Realty sent a statement to FOX 17 stating that while the homeowner benefit term is 40 years, the opportunity to represent the seller is for just 6 months.

The company added that claims made about the company engaging in unfair or deceptive practices are false.

To see the company's full statement, click here

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