Most of the Michigan homeowners who signed up with MV Realty’s “Homeowner Benefit Program” were paid $300 to $500 up front. In exchange, they gave the company an exclusive right to list their homes for 40 years. Michigan Attorney General Dana Nessel sued MV Realty on October 23, alleging the deals are disguised loans, and says more than 900 of the agreements are still active.
What a $300 to $500 payment bought
According to the attorney general’s office, MV Realty presented itself as a real estate brokerage and marketed the program as a way for homeowners to get cash. The agreements gave the company an exclusive 40-year right to represent the homeowner in any sale of the home. The state says MV Realty entered more than 1,000 such agreements with Michigan consumers, and more than 900 remain active.
If a homeowner sells, the state says MV Realty required one of two payments: a commission of 3 to 6 percent of the sale price, or an early termination fee the attorney general calls “predatorily structured.” The agreements were recorded in the homeowners’ chains of title, which the state says created a lien on each home.
The attorney general’s office says homeowners reported being unable to sell or refinance. It says those who asked MV Realty for a release were told to pay the early termination fee. Nessel said in the release: “Homeownership is, for most Michigan families, their single largest financial investment.”
For homeowners who signed, the practical question is whether the agreement is recorded against their property. The release says the agreements were recorded in the chain of title, so the county register of deeds where the home sits is where such a filing would appear. Anyone who wants to tell the state about their experience can use the attorney general’s consumer complaint form, which the office says it handles through informal mediation.
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What the lawsuit alleges and what it asks a judge to do
The case was filed in the 30th Circuit Court in Ingham County, which covers Lansing. The defendants are three MV Realty limited liability companies that the release describes as Michigan and Florida based. The state brings claims under the Michigan Consumer Protection Act and the federal Consumer Financial Protection Act, plus a public nuisance claim.
The consumer protection counts rest on three alleged misrepresentations: that the cash payments were not loans, that homeowners only had to work with MV Realty for six months, and that the recorded agreements were not liens. The nuisance claim cites Michigan’s Criminal Usury Act, its Interest Rates Act, which the release says bars written agreements to pay interest above 7 percent a year, and the Michigan Regulatory Loan Act.
The state’s theory is that the company placed 40-year liens without a license and collected interest above 25 percent a year, in the form of commissions or early termination fees. The release also says MV Realty has no valid Michigan real estate broker’s license and employs no one who holds one.
The relief the state seeks is broad. It asks a court to declare that the violations occurred and to bar future violations, and to rescind, strike or limit every Homeowner Benefit Program agreement with a Michigan consumer. It also seeks damages for some consumers, a ban on collecting commissions and early termination fees from customers who got the payment, and the return of amounts already collected.
The state also seeks restitution for consumers who paid early termination fees, plus civil penalties, though the release gives no dollar amount for either. A lawsuit is not a settlement. No claim form exists, and the release does not say whether or when any money would be returned.
Michigan is not the first state to sue
North Carolina Attorney General Josh Stein sued MV Realty in March 2023, alleging the company targeted homeowners facing financial hardship with small upfront payments described as “no strings attached.” His office said more than 32,000 homeowners nationwide had signed up, including more than 2,100 in North Carolina, and that the early termination penalty was at least 10 times the upfront payment.
“We allege that MV Realty is preying on vulnerable people to trick them into unfair, long-term agreements,” Stein said then. North Carolina’s complaint described the same kind of 40-year exclusive agreement. His office said the agreements survive the homeowner’s death and place a lien that can make it difficult or impossible to sell the home or borrow against its equity.
The Michigan release does not mention actions in other states, and it does not say how the company responded. It also does not give a hotline specific to this case. The attorney general’s general consumer line is 517-335-7599, and residents in the state can call 877-765-8388.
What is still undecided is how many of the 900 active agreements a judge could set aside. The release gives no hearing dates and does not say what homeowners with an agreement on their deed should do in the meantime.
Is an MV Realty agreement sitting on the deed?
The state says the agreements were recorded against homes, and a judge has not ruled on any of them.
A 40-year agreement recorded against a home can block a sale or refinance, and the state says homeowners who asked for a release were told to pay a fee. The lawsuit asks for restitution and penalties, but no claim process exists and the release gives no timeline for any money coming back.
A lawsuit is not a settlement, so The Settlement & Refund Recovery System cannot file anything for a homeowner. It does handle the related job of tracking money that might one day be owed: the four-date rule for reading a settlement notice, a claim log and payment tracker, and a 5-tab Excel tracker pre-filled with all 51 state unclaimed-property offices.
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
