KALAMAZOO, MI (WKZO AM/FM) — Kalamazoo County Clerk Meredith Place is warning homeowners to be cautious of a real estate agency’s benefits program.
In a FOX17 news report from Friday, January 26, Place put out the call to homeowners to be aware of a program offered by MV Realty called a Homeowner Benefit Agreement, which offers people cash upfront in exchange for the exclusive right to list their home should they decide to sell.
According to Place, what sets this agreement apart is that the company offers fast cash anywhere from $300 to $5,000 upfront for an exclusive listing agreement basically in exchange for a commitment that could last up to 40 years, meaning that if homeowners decide to sell, they have to list with MV Realty.
“They typically take a 6% commission,” said Place as she spoke with FOX17 on Friday.
“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 says the company is currently facing civil lawsuits filed by attorneys general in Florida, Massachusetts, and Pennsylvania, and that out of 30 agreements in Kalamazoo County, there are two records of termination.
As the county is working to notify Michigan Attorney General Dana Nessel to look into the company, MV Realty sent out a statement saying while the homeowner benefit term is 40 years, the opportunity to represent the seller is just for 6 months.
