Arizona Attorney General Kris Mayes is taking aim at a real estate company she says used predatory tactics to tie up homeowners' properties with costly restrictions.
In a lawsuit filed on Aug. 17, Mayes alleged that the company's business model ensnared vulnerable residents in misleading contracts that could create long-term problems for their families, according to KJZZ.
Here's what to know
Mayes' office alleged that MV Realty's listing program in Arizona was both fraudulent and predatory, prompting the state's lawsuit.
The dispute centers on agreements that gave homeowners cash upfront while granting MV Realty the exclusive right to list the property if it was later put up for sale.
State lawyers contend the company failed to clearly explain those deals and then recorded liens against Arizona homes connected to them.
Richie Taylor, a spokesman for the attorney general's office, said those liens could keep homeowners or their heirs from transferring property unless they paid what the company claimed were early termination fees.
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Taylor said the attorney general's office believes more than 1,500 Arizona homeowners were affected and that each lost thousands of dollars.
More background
According to the state, recording those obligations in property records could make it harder to sell a home, transfer it, or pass it along to heirs.
On Aug. 13, the Arizona Mirror covered Mayes' lawsuit, quoting a press release announcing the lawsuit.
"MV Realty misled homeowners about the true nature of the Homeowner Benefit Program. Arizona homeowners who fell victim to MV Realty's deceptive sales practices were trapped by the liens placed on their homes and stripped of their hard-earned equity," it read.
"My office will not allow predatory companies to take advantage of and profit from Arizona homeowners by making false promises," Mayes added.
What's being done?
The lawsuit is the attorney general's office's effort to challenge MV Realty's practices.
The office is also seeking any other Arizona homeowners who may have been affected by the company's alleged actions.
In the suit, Mayes' office outlined what it characterized as predatory practices, per the Arizona Mirror.
"MV Realty incentivized volume enrollments by paying its sales agents a $500 commission for each [Homeowner Benefit Program] originated (rather than a salary) and used performance metrics to drive sign‑ups," the complaint stated.
"Defendants typically withheld complete documents from homeowners until a notary arrived to execute the HBAs," it continued.
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