Realty under investigation in NC continues to take homeowners money: 'Who is MV Realty?'
KNIGHTDALE, N.C. (WTVD) -- New details into a Troubleshooter investigation into a realty company the North Carolina Attorney General claims is tricking homeowners into signing deceptive contracts.
The company, MV Realty continues to take thousands from homeowners as one Knightdale woman was forced to pay MV Realty nearly $10,000 at closing, despite MV Realty not having anything to do with selling her home.
Just days before closing on her home, Adrienne Spencer learned the bad news. She adds, "MV Realty has a lien on my house. So they now they're trying to charge me." Charged Spencer $9,600 at closing despite MV Realty not having anything to do with selling her home. "I was like who is MV Realty? I can't recall who they are or anything like that," she added.
While she didn't remember signing a listing agreement with MV Realty back in 2020, she did and Spencer soon learned the company had a lien on her home for forty years. Spencer says when she got in touch with MV Realty, "She sent me a copy of the paper saying that if you sell your house, they have up to 40 years and they're the ones that have to sell it."
In November of 2022, ABC11 Troubleshooter Diane Wilson first told you about MV Realty and how the company offered the Homeowner Benefit Program. It's a program in which in exchange for quick cash, you give the company the exclusive right to list and sell your home for 40 years.
Spencer says she doesn't remember agreeing to it, but MV Realty sent her an email that shows in 2020 they paid her $775 for that right. "There is no way I would turn my house over for $775," Spencer adds. She also said back in 2020, she was going through a hard time, and she had no idea that she was agreeing that MV Realty would have the exclusive rights to list and sell her home. If she didn't use MV Realty when she sold her home, MV Realty would consider it a breach of contract to their Homeowner Benefit Program.
Fast forward to three years later, Spencer listed her home for sale with her realtor and it sold, with no help from anyone at MV Realty. Spencer's realtor Yolanda Martin said when she took the listing, she had no idea about the agreement with MV Realty. Martin adds, "I was so surprised because we didn't see any evidence of the lien being attached to the property. So I immediately started googling the company, and the whole story was there just laid out in front of me."
After our investigation, NC lawmakers got involved and now long-term listing contracts like MV realty are illegal here in NC. Plus, State Attorney General Josh Stein is suing MV Realty and a judge ordered the company to temporarily pause its program. MV Realty has also declared bankruptcy. Besides AG Stein, several other state attorneys general have also filed suit against MV Realty. However, none of those actions have prevented MV Realty from collecting fees at closing on the homeowners who have contracts before those actions like Spencer. She adds, "They're actually getting paid and they haven't done anything. So they're receiving $10,000 for nothing."
Spencer was forced to pay MV Realty at closing the $9,600 as part of the Homeowners Benefit Program agreement she signed, and she now has this advice for others. "Just don't sign any paperwork without completely reading it and have it fully explained," Spencer said to Troubleshooter Diane Wilson.
Wilson asked Attorney General Stein's office how MV Realty could still collect money at closing as they did with Spencer, and his office said they couldn't comment as they await further rulings from the business and bankruptcy court. MV Realty did not get back to Wilson for comment on this story, in the past they said in part, "MV Realty remains confident that the Homeowner Benefit Program fully complies with the law and benefits consumers who receive a cash incentive to select MV Realty as their listing agent. MV Realty has voluntarily and temporarily paused entering into any new agreements."
