Controversy Surrounds Cash for 40-Year Listing Rights Contracts in St. Louis Real Estate Market

Attorney General Andrew Bailey vs MV RealtyMV Realty Holdings, LLC, a Florida-based real estate company, has recently come under scrutiny for alleged wrongdoing and is currently facing bankruptcy proceedings. The company, which offers homeowners cash in exchange for exclusive rights to list their properties for sale for purportedly a period that lasts forty (40) years, has been accused of deceptive practices and unfair treatment of its clients, including homeowners in Missouri and the St. Louis area.

Here in Missouri, MV Realty has faced legal action from Missouri State Attorney General, Andrew Bailey who, earlier this year, filed suit against MV Realty “for its deceptive practices in marketing its services to Missouri homeowners.”  In a press release about this suit, Attorney General Bailey stated “I will enforce the laws as written and defend innocent Missourians from being ripped off” and the he was “proud of the work done by our Consumer Protection Unit to obtain justice for victims in this case.”

The suit filed by Attorney General Bailey alleges that “MV Realty, in violation of Missouri law, paid homeowners a tiny percentage of the value of their homes in exchange for a promise that the homeowner would use MV Realty as their brokers when they sold their homes.”  Attorney General Bailey’s statement about the suit filed goes on to to state that “the petition further alleges that MV Realty failed to tell the homeowners that the contract would be enforceable against their heirs after their death, that the contract bound them for 40 years, and that it would result in a lien being placed on their homes. In some instances, MV Realty falsely told homeowners that MV Realty would not place a lien on their homes, and that they would never have to pay the money back.”

Attorney General Bailey is asking the court to order that the liens be removed, that the agreements are void and unenforceable and to provide restitution to consumers who have been charged unlawful cancellation penalties and then finally to order that MV Realty pay fines and penalties, including $213 million in penalties for calling homeowners on the No Call list.

MV Realty operated in several states and appears to have complaints mounting in many of them from various parties.  In late 2022 the Florida Attorney General’s Office filed a lawsuit against MV Realty, accusing the company of violating the state’s Deceptive and Unfair Trade Practices Act. The lawsuit sought to enjoin MV Realty from engaging in further deceptive practices and to obtain restitution for affected homeowners.

As legal challenges and claims against MV Realty accumulated, MV Realty Holdings and approximately two dozen affiliated companies sought Chapter 11 bankruptcy protection in September 2023. This move automatically initiates a “stay” on existing lawsuits and claims, effectively pausing them. These actions remain on hold until the bankruptcy court either grants relief from the stay or the bankruptcy case concludes through dismissal or discharge. Currently, with the bankruptcy cases still active, proceedings are largely at a standstill. However, indications suggest the bankruptcy court may soon make further developments or progress.

Homeowners, including those in the St. Louis area, who entered agreements with MV Realty, face uncertainty regarding their property liens and seek clarity on their standing as the legal and bankruptcy proceedings progress.

The purpose of sharing this information is to educate homeowners on the importance of thoroughly understanding any agreements concerning their homes, advocating for informed decision-making with the support of qualified professionals. In our real estate practice at MORE, REALTORS®, we emphasize education and leverage a network of trusted professionals to guide homeowners, reflecting our commitment to looking out for our clients best interest and to equipping our clients to make informed decisions.

Don’t miss these posts!

We don’t spam! Read our privacy policy for more info.

🤞 Don’t miss info like this!

We don’t spam! Read more in our Privacy Policy

Comments are closed.