Real Estate
Home›Real Estate›Industry›Arizona sues MV Realty over alleged cash-for-listing d…
Arizona sues MV Realty over alleged cash-for-listing deception
The complaint says MV Realty used memorandums recorded against homes as liens that could block transfers unless homeowners paid thousands in early termination fees.
Arizona Attorney General Kris Mayes has filed a lawsuit against MV Realty of Arizona, MV Brokerage of Arizona, MV Realty PBC, and related entities, alleging the companies ran a deceptive scheme targeting financially vulnerable homeowners through cash-for-listing agreements. HousingWire reports the case centers on MV Realty’s Homeowner Benefit Program, which the state says offered immediate cash in exchange for an exclusive right to serve as the listing agent later.
According to the complaint, MV Realty allegedly failed to disclose key terms, including that the agreements allegedly included a 40-year term and could bind homeowners’ heirs. The lawsuit also claims the company recorded memorandums against homeowners’ properties that operated as liens, potentially preventing owners or heirs from transferring ownership without paying thousands of dollars in early termination fees, and potentially interfering with refinancing or home equity loans.
The state further alleges MV Realty marketed the program through online, telephone, and digital campaigns, including alleged telemarketing violations tied to consumers registered on the National Do Not Call Registry. HousingWire notes the AG is seeking penalties and lien removals.
MV Realty suspended the program in 2023, and later filed for bankruptcy, HousingWire reports. The American Land Title Association and AARP applauded the state’s legal action, with Mayes arguing the program misled homeowners and trapped them by the liens placed on their homes.