(COLUMBUS, Ohio) — Ohio Attorney General Dave Yost is seeking preliminary and permanent injunctions against MV Realty of Ohio, the company’s founder and its principal broker to stop them from negotiating real estate contracts that violate Ohio law and from practicing real estate without proper licensing.
Yost’s office filed the request in Franklin County Common Pleas Court on behalf of its client, the Ohio Department of Commerce’s Division of Real Estate and Professional Licensing.
“Deliberately tricking people to make money off their homeownership is a shameful business model,” Yost said. “If it’s truly a good deal, all the details will be clearly explained in writing. Ohio doesn’t need to tolerate the defendants’ deceitful practices.”
The attorney general’s lawsuit alleges that MV Realty founder Amanda Zachman and broker Diana Remar confuse and mislead homeowners with the company’s “Homeowner Benefits Agreements,” contracts that omit crucial information and language required by state law.
Specifically, they deceive Ohioans by providing clients cash as a “loan alternative” in exchange for using MV Realty as their exclusive real-estate listing broker for a given period.
During that time, if the homeowner lists the property for sale without using MV Realty as its broker or the home is foreclosed upon, or if the homeowner’s heirs try to sell the home or the homeowner simply wants to cancel the deal, the defendants seek to be paid 3% of the property value — with both the percentage and the property’s value determined by MV Realty, per the misleading agreement created by the defendants.
Whenever such an instance occurs, the defendants take out a lien on the homeowner’s property, issuing an additional memorandum asserting MV Realty’s exclusive right to list the house, thus binding the property owner to the terms of the agreement.
What MV Realty’s agreements leave out, Yost’s lawsuit says, are these vital state-mandated details:
- The name of the agent to be used
- Required fair housing language
- Required anti-blockbusting language
- A clear statement for the expiration of the agreement
- A clear statement of representation
The lawsuit also maintains that Zachman, who lives in Delray Beach, Florida, is not licensed in Ohio as a real estate salesperson but is illegally acting as one through MV Realty and Remar, who is a licensed Ohio broker.
Yost is asking the court to put their unlicensed practice out of business.
Consumers who have been affected by a contract with MV Realty can file a complaint with the Division of Real Estate and Professional Licensing.
Consumers who suspect unfair practices should contact the Ohio Attorney General's Office at OhioProtects.org or 800-282-0515.
MEDIA CONTACT:
Hannah Hundley: 614-906-9113
-30-