40-year listing contract flooded with complaints

Liu Shichelman

The call came at just the right time for Beatrice Nwana.

“I needed money,” she told me. It was sudden. I don’t know how she got my phone number. “

Florida-based MV Realty has offered Nwana $850 into a listing agreement under which she will use MV as her listing agent if she decides to sell her home in Arlington, Texas at any time for the next 40 years. offered to sign. She “thought it was a good idea,” and who listed her place “doesn’t matter. was.

Judging by the 70+ reviews submitted to the Better Business Bureau, none of which have been verified, MV Realty has many satisfied customers.

“The process was simple, well explained, and professional from start to finish,” says one. “I would definitely recommend it to anyone.”

But others aren’t so happy – they’re not happy with the concept, the way it’s presented, or the results. But MV claims the practice is perfectly legal, and there is no other court yet.

How the company works

The pitch for this homeowner benefits program is easy. MV Realty will pay you a percentage of your home’s value up to $5,000 when you sign a binding 40-year listing agreement. A company spokesperson who candidly answered many of my questions said in an email that MV “takes all the risks…there is no certainty that the investment will return.”

“We seek to disrupt the real estate market by building long-term relationships, not transactions, with our clients,” founder Amanda Zachman said in a statement. to become a trusted provider of critical real estate information, support and related resources.”

If you are registered with MV, you must list the company at the time you decide to sell. After that, the company will take him six months to find a buyer. In that case, you will be obligated to pay a 6% commission, which will be split with the buyer’s agent. If unsuccessful, you are free to use another company or sell the place yourself, but if it remains unsold after 180 days, the listing will revert to his MV.

The contract has a 3-day cancellation period during which the customer can change their mind. But then the contract will continue with his land for 40 years. This means that if you die before the land is sold, your heirs are bound by the contract.

In contrast to most other companies whose agents are independent contractors, the company has over 500 agents as employees and is “present” in 33 states. However, agents work from home and do not have an office to visit. MV adopters must be licensed members of the local real estate association and comply with continuing education requirements and a code of ethics.

MV claims its agents earn almost double the industry median “salary,” but most agents work on commissions, not salaries. Also, while some agents rave about the company online, not all do.

For example, a San Antonio agent said working for MV was “the worst work experience” in her 23 years in business.

“If an MV Realty recruiter contacts you, be careful,” she warned. “They don’t care about your success. It’s all about the numbers.”

“As long as you don’t mind feeling like you’re imposing a very frightening contract on very vulnerable people, it’s as easy as it gets,” complained another agent.

contract concerns

As far as I know, this program is primarily sold over the phone. The company said it only “engages” with prospects who respond to its ads. But some of his BBB commenters say they don’t remember contacting the company.

Documents are sometimes sent by email, but it seems that the documents are delivered first when the notary shows up to collect the owner’s signature. Not only do notaries know anything about the program, their only job is to verify the identity of the person who signed the document.

“they [MV] Some notaries do not explain to consumers the contracts they are signing.” [a] Pay in cash and give false information. ”

Perhaps that’s why notaries in certain areas of Washington, DC have been less successful in obtaining signatures. Of his 12 assignments representing MV Realty, 11 hesitated, he said. Some saw newspapers for the first time. Others were emailed documents but still had questions.

An MV agent was never there to answer inquiries, but the company claims its customers receive “five-star service.”

Some title companies have expressed concerns about MV’s exclusive listing rights agreement, which has been recorded as a lien on assets. One homeowner who received her $1,500 from the company said she was not informed about the mortgage on her property and only learned about it when she applied for her home equity loan. said.

She said MV wanted $15,000 to end a six-month-old deal. rice field. “My lender [the] MV Realty’s lien will expire before any revenue is earned. … It seems impossible to try to make some kind of compromise. “

Unfortunately, compromise doesn’t seem to be part of MV’s modus operandi. In many cases, companies went to court to enforce contracts. In Florida alone, he found eight cases in which MV was the plaintiff.

Lew Sichelman has covered real estate for over 50 years. He is a regular contributor to numerous shelter magazines, housing and mortgage industry publications. Readers can contact him at his lschelman@aol.com.