(COLUMBUS, Ohio) — A realty company accused of misleading homeowners has been ordered to halt its deceptive practices thanks to the efforts of Ohio Attorney General Dave Yost and his staff.
The Franklin County Common Pleas Court issued a preliminary injunction against MV Realty of Ohio, its founder, Amanda Zachman, and its principal broker, Diana Remar. The injunction prohibits MV Realty from engaging in the unlicensed practice of real estate, from entering into new exclusive right to list agreements, and from using agreements that are not in compliance with Ohio law.
“Taking swift action against MV Realty and securing a preliminary injunction is a crucial step in safeguarding Ohio's homeowners and upholding the integrity of our real estate market,” Yost said. “We cannot tolerate deceitful practices that trick people and put their hard-earned assets at risk. Ohioans deserve a fair and transparent real estate environment."
MV Realty uses a unique business model. The company enters into contracts in which it gives homeowners a small amount of cash for the exclusive right to list the real estate for sale at a future, unspecified date. The duration of the contract is for multiple decades. MV Realty then files a memorandum with the county recorder that operates as a lien on that property that runs with the land, not with the owner.
The lawsuit, filed in February on behalf of the Ohio Department of Commerce's Division of Real Estate and Professional Licensing, contends that MV Realty’s “Homeowner Benefits Agreements” deceive homeowners by omitting crucial information required by Ohio law, such as fair housing language, anti-blockbusting language, a definite end date, and a clear statement of representation. This violates Ohio’s real estate laws and puts homeowners at risk.
This preliminary injunction issued by the court aligns with recent legislation enacted by the Ohio legislature, preventing agreements of this nature and protecting homeowners from deceptive practices.
MV Realty must adhere to the preliminary injunction; failure to do so may result in them being held in contempt of court. A status conference is set for August 16.
Consumers who have been affected by a contract with MV Realty can file a complaint with the Division of Real Estate and Professional Licensing.
Consumers who suspect unfair practices should contact the Ohio Attorney General's Office at OhioProtects.org or 800-282-0515.