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NC lawmakers introduce new bill targeting contracts like MV Realty used

By Jason Stoogenke, wsoctv.com
By Jason Stoogenke, wsoctv.com

CHARLOTTE — There’s an update in the Action 9 investigation involving MV Realty, the real estate company that offered homeowners fast cash in exchange for the exclusive right to sell their home for 40 years.

Jason Stoogenke learned that North Carolina lawmakers have introduced a bill that would ban long-term real estate agreements like the ones that MV Realty used.

That company offered the “Homeowner Benefit Program.” It would give a homeowner up to $5,000 if they signed a contract saying if they decided to sell their home in the next 40 years, they would use MV Realty. If they did hire another realtor, they would be required to pay MV Realty 3% of the value of their house. If the homeowner died, the person who inherited the home would be bound to the agreement too.

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Now, North Carolina lawmakers have introduced a bill called the “Unfair Real Estate Agreements Act.” It does not mention MV Realty by name, but it would ban many of the practices the company used. For example, it would prohibit contracts between realtors and homeowners/homebuyers that are “binding for more than one year,” bind “future owners,” or “create a lien, encumbrance, or other real property security interest.”

The next step for this legislation is typically a first reading and then the Speaker assigns the bill to a committee.

(VIDEO: North Carolina attorney general sues embattled real estate company MV Realty)

North Carolina attorney general sues embattled real estate company MV Realty

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