Attorney General Keith Ellison has filed a lawsuit against MV Realty PBC, LLC, its Minnesota branch MV Realty of Minnesota, LLC, and their officer Amanda Zachman. The lawsuit alleges that the company violated Minnesota consumer protection laws by selling contracts with oppressive terms to homeowners while concealing these terms in verbal sales pitches. These contracts were named "Homeowner Benefit Agreements" (HBAs).
The lawsuit was filed in Ramsey County and claims that MV Realty sold HBAs as a way for homeowners to receive quick cash from the company. In return, homeowners had to use MV Realty as their realtor if they decided to sell their home. However, many homeowners reported being unaware of the contract terms and were misled about key details.
According to the lawsuit, most homeowners received less than $1,000 upfront. Despite this small amount, MV Realty informed private investors that the HBAs were liens on properties but told consumers otherwise. Homeowners also reported being deceived about the contract length and termination conditions.
Amanda Zachman is accused of signing many HBAs without proper licensure in Minnesota. Additionally, every contract allegedly failed to comply with Minnesota’s Home Solicitation Sales Act.
"Companies have an obligation to tell you what they’re selling you," Attorney General Ellison said. "They have an obligation to give you the truth about what you’re being asked to sign... companies are not allowed to lie to consumers."
The lawsuit also states that MV Realty enforced its HBAs aggressively, even suing deceased homeowners' relatives and those whose homes went into foreclosure.
MV Realty faces similar lawsuits in multiple states including California, Florida, Georgia, Illinois, Indiana, Massachusetts, New Jersey, North Carolina, Ohio, and Pennsylvania. Recently in Florida, a court found MV Realty's HBA contract unconscionable under state law.
Minnesotans are encouraged by Attorney General Ellison to submit complaints about MV Realty or similar schemes through the Attorney General’s Office online complaint form or by calling (651) 296-3353 within the Twin Cities or (800) 657-3787 from Greater Minnesota.
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