07/02/2022
If you're a homeowner please read this it could save you from a lot of aggravation and monetary loss. https://m.facebook.com/kirshlawfirm/photos/a.10150226615250335/10166444155855335/?type=3
⚠️A Word of Caution for Realtors and Homeowners⚠️
We’d like to make homeowners and agents aware of a “Homeowner Benefit Program” being solicited to homeowners by MV Realty. It is marketed as a “loyalty” or “benefit” program, and MV Realty will give the homeowner a nominal cash payment to join the program. But in exchange for the nominal payment, the homebuyer gives MV Realty the exclusive right to act as the homeowner’s listing agent should the homeowner decide the sell their home within the next 40 years. 😲
To ensure the payment of their fee, MV Realty will send a salesperson and a notary to the house to have the homeowner sign a “Memorandum of Homeowner Benefit” agreement which MV Realty will then record in the county land records. Many homeowners don’t fully understand what they are signing and are caught by surprise when the title search reveals the Memorandum and the homeowner’s obligation to pay a large fee to MV Realty even if MV Realty was not involved in the sale transaction.
Many homeowners will want to dispute the agreement with MV Realty. However, because the Memorandum of Agreement is recorded in the land records it is effectively a lien against the property and must be paid in order to clear title and complete the sale.
We have been told that MV Realty will aggressively enforce its rights under the agreement and may file a lawsuit if they discover that the property has been listed with another broker.
MV Realty does operate in our area and has recently recorded several of these agreements in Cecil County, Maryland.
If you are a homeowner and are approached by MV Realty for participation in their Homeowner Benefit Program, please consider your obligations carefully and make sure you fully understand the terms of the agreement before you sign anything.
