Would You Do This Deal?
Would you make a 40-year commitment in exchange for $300-$5000 cash, with no credit check or loan required?
MV Realty, based in Delray Beach FL, thinks homeowners will which is why they came up with their “innovative” Homeowner Benefit Program.
The program, currently available in 33 states according to their site, pays homeowners upfront money ranging from $300-$5000, based on the estimated value of their home, in exchange for the right to list their home for sale at some point in the future.
Homeowners who decide to sell any time within the 40-year length of the agreement must do so with MV Realty at a six percent commission. Violating the legally binding contract by listing with a different realtor or selling by owner will result in a financial penalty equal to three percent of the market value of the home. MV Realty states they file a memorandum to alert them to any breaches of contract on each covered house. Upon signing, homeowners waive the right to be party to a class action lawsuit, and agree MV Realty can delegate some or all of its obligations to others.
What happens of the homeowner who signed the agreement dies before the 40-year agreement ends? MV Realty’s FAQ site page reads, “The agreement our clients sign has a 40-year term and remains in effect for the full-term – even if the original homeowner has passed away.”
Thinking of canceling the agreement? – “Our agreement is fully binding and you may not repay our cash incentive in order to exit the agreement. If you need to cancel the agreement, you will be required to pay a 3% fee (equal to the fee we would receive for successfully selling your home).”
You can read more about MV Realty’s Homeowner Benefit Program at homeownerbenefit.com or do a search for their business on the Better Business Bureau site. Always fully investigate and understand before you sign any legally binding agreement – especially one that spans 40 years.