Has anyone seen the news about MV Realty and the ‘liens’ they have filed against thousands of homeowners in Georgia? We have run across these filings on a couple closings in our office.
MV Realty will contact a homeowner, usually elderly, and pay them $500 to $2,000 in exchange to agree to have MV Realty be the listing real estate agent on the house, if the owner ever sells it.
What is not made clear to the homeowner is that they are signing a Memorandum of Homeowner Benefit Agreement, which is a document giving MV Realty a ‘covenant running with the land’ for the amount of any commission they may have earned for a term of 40 years.
MV Realty will then only release their claim for $10,000 or $20,000, depending on what they think they may have earned in commission.
Lien laws are not supposed to protect someone from getting what they think they may get in the future on a sale. So the Georgia legislature passed a law this year making the Memorandum of Homeowner Benefit Agreement not enforceable as a lien on the property. The vote in the state senate was 52 to 1. These agreements were so bad, they cut across any political lines.
Never agree to anything for 40 years. It’s better not to agree to anything unless you have talked to an attorney. If you know a real estate agent with questions about liens and agreements, Origin Title and Escrow can help.
John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.