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More states are closing in on MV Realty.
Earlier this week, Pennsylvania and Massachusetts became the latest states to file lawsuits against the brokerage for alleged deceptive practices.
MV Realty offers impoverished homeowners cash in exchange for a 40-year contract to list their home and a lien on their property to secure MV Realty’s real estate commission.
The brokerage, which operates in 33 states and has more than 500 licensed agents, is currently under investigation by several state regulators over its “homeowner benefit agreements,” which MV Realty has been offering since 2018. The attorney general of Florida, where MV Realty is based, became the first state to file suit against the company at the end of November.
On Dec. 13, the attorneys general of Pennsylvania and Massachusetts filed similar, separate suits against the brokerage; Pennsylvania’s suit also names MV Realty founder Amanda Zachman as a defendant. In addition, the attorney general of Massachusetts has filed a request for a temporary restraining order and preliminary injunction to ban MV Realty from offering homeowner benefit agreements in the state.
Pennsylvania’s suit accuses the brokerage of violating Pennsylvania’s Unfair Trade Practices and Consumer Protection Law while the Massachusetts case alleges violations of the Massachusetts Consumer Protection Act as well as violation of a small loan law and the state’s Good Funds Statute.
According to Pennsylvania’s complaint, MV Realty has done business with about 1,000 homeowners in the state, most of which have received upfront payments of between $400 and $700.
“Pennsylvania homeowners are falling victim to MV Realty’s calculated deception in hiding the terms of the Homeowner…