COLUMBUS, Ohio — Ohio homeowners who signed long-term contracts (called “Homeowner Benefit Agreements”) with MV Realty of Ohio have until April 29 to cancel those agreements under a one-time offer being communicated directly to consumers.
MV Realty is a real estate company based in Columbus, Ohio which has been the subject of a lawsuit by the Ohio Attorney General’s office, which alleges MV Realty used misleading contracts called “Homeowner Benefit Agreements” that offered homeowners cash upfront in exchange for exclusive listing rights lasting decades and omitted information required by Ohio real estate law
The cancellation opportunity allows homeowners to get out of MV Realty’s Homeowner Benefit Agreement without repaying any upfront money they received. To cancel, consumers must notify MV Realty and pay a one-time fee to cover the cost of recording the contract termination with their county recorder.
“These agreements carried long-term financial consequences that many homeowners may not have fully understood when they signed,” Yost said. “This cancellation offer gives Ohioans a rare chance to walk away.”
MV Realty has begun sending letters to 947 Ohio consumers outlining the cancellation option, which is available only for the 90 days ending April 29. The Ohio Attorney General’s Office has also sent letters to those same affected homeowners urging them to review the cancellation offer closely and consider whether cancellation is in their best interest.
The letter outlined that the agreement could affect current homeowners’ ability to obtain mortages and home equity lines of credit through filings with the county recorder’s offices and it also could effect heirs after the homeowner dies since MV Realty could demand a portion of any future sales.
MV Realty’s Homeowner Benefit Agreements typically granted the company an exclusive listing right for up to 40 years in exchange for giving homeowners an amount of cash upfront. If a homeowner sold or transferred the property without using MV Realty, or if heirs attempted to sell after the homeowner’s death, the company could demand a payment equal to at least 3% of the home’s value, with the value determined by MV Realty.
The agreements, Yost said, may carry “very significant future financial implications,” even for homeowners who do not plan to sell in the near future. He called the limited-time cancellation offer “a very significant opportunity.”
