Metro Homeowners Locked Into 40 Year Contracts With Real Estate Company
The real estate market is no stranger to enticing offers and creative marketing strategies, but Florida-based MV Realty has taken a unique approach with its Homeowner Benefit Program.
At first glance, the program appears to be a win-win for homeowners who receive significant checks just for signing up.
However, a closer examination reveals a 40-year contract that locks homeowners in and grants MV Realty the exclusive right to sell their homes.
In this blog post, we will analyze the program’s structure, a case study involving a distressed homeowner, and the legal implications of the contract.
MV Realty’s Sales Pitch: Immediate Payouts and Long-Term Implications
The Homeowner Benefit Program’s main selling point is the immediate payout homeowners receive upon signing up.
Checks can range from $300 to $5,000, depending on the property’s value.
While this may seem like an attractive offer, the long-term implications of the contract should not be overlooked.
By signing up, homeowners grant MV Realty the exclusive right to sell their homes for the next 40 years, potentially leading to unforeseen complications down the road.
Case Study: Wanda Babb and the Lien on Her Home
One homeowner who has experienced the distressing consequences of the Homeowner Benefit Program is Wanda Babb.
After signing up for the program, a lien was placed on Babb’s fire-damaged Gwinnett County home, blocking the sale and preventing her move to Florida.
MV Realty claimed exclusive rights to sell the property, leaving Babb stuck in a difficult situation.
Real estate experts, such as Channel 2 consumer advisor Clark Howard, have criticized MV Realty’s approach, warning homeowners to be cautious of accepting money for property listings, as it is not standard practice in the industry.
Canceling the MV Homeowner Benefit Contract: Penalties and Disagreements
Should homeowners wish to cancel their contract with MV Realty, they face a penalty amounting to 3% of their home’s value.
In Babb’s case, this exceeded $6,000. Babb claims that she was recovering from hospitalization when the MV representative approached her, leaving her unable to fully understand the contract’s terms.
However, MV Realty maintains that Babb was the one who initially contacted them and that she was well-informed about the program before joining.
Legal Implications and Opinions
Jeffrey Jackson, Babb’s attorney, argues that the MV agent should have recognized Babb’s condition and refrained from entering into an agreement.
Listing and buyers’ agents, Rebecca Broich and Jane Seanar, expressed shock at the 40-year listing agreement and have agreed to waive their commissions to help Babb pay the penalty and sell her home.
MV Realty’s Defense and Compliance with Georgia Law
Despite the controversy surrounding the Homeowner Benefit Program, MV Realty insists that it is in full compliance with Georgia law.
The company maintains that homeowners are not required to sell their homes, but if they choose to do so, the sale must be conducted through MV Realty.
The MV Realty Homeowner Benefit Program, while enticing at first glance, has raised concerns and criticism from both homeowners and real estate experts.
The long-term implications of the 40-year contract and the potential distress it can cause homeowners should be carefully considered before signing up.
It is essential for homeowners to be well-informed and to fully understand the terms and conditions of any real estate contract they enter into.