Minnesota Attorney General Sues MV Realty Over Phone Pitches for 40-Year "Homeowner Benefit Agreements"

The bottom line: in a sale made by phone, what the script leaves out can matter as much as what it says.

What happened

According to the complaint, MV Realty bought leads on Minnesotans looking to refinance their homes, then called them to offer a Homeowner Benefit Agreement (HBA). The pitch: cash now for making MV Realty the listing agent if the home is ever sold. One script quoted in the complaint told homeowners the deal "is not a loan" and that "we don't ask that you pay us back." The Attorney General says the up-front payment for most Minnesota homeowners was less than $1,000.

The complaint describes two steps:

1. Transfer specialists made the first outbound calls, using scripts that said almost nothing about the HBA beyond the payment.
2. Agents then took the call. They had to make at least 30 calls per workday to receive their draw, and earned a $500 commission for every HBA sold.

The terms the Attorney General says were hidden

Per the complaint, the written contract, brought to the home by a third-party notary, provided that:

• The HBA lasts 40 years and binds the homeowner's heirs.
• An "Early Termination Fee" of 3% of the home's value applies if the homeowner uses another realtor.
• MV Realty receives a 6% commission.
• MV Realty may record a memorandum on the property title.

The Attorney General also alleges that MV Realty told investors it filed liens on HBA properties while calling the HBA's recorded memorandum "not a lien," and sued relatives of deceased homeowners to collect the fee.

The claims

The complaint (Ramsey County case no. 62-CV-24-5877) asserts violations of Minnesota consumer protection statutes, including the Home Solicitation Sales Act, which requires notice of a three-day right to cancel. It also challenges the fee as an unlawful penalty and alleges real estate licensing violations. Read the Minnesota Attorney General's complaint against MV Realty.

These are allegations. The press release notes similar suits in ten other states, and a Florida ruling, on the State of Florida's summary judgment motion, that the HBA is unconscionable and violated the Telemarketing Sales Rule (TSR).

Earlier: the FCC flagged MV Realty's dialer and carrier

On January 24, 2023, the Federal Communications Commission (FCC) Enforcement Bureau issued a public notice (DA 23-65) telling voice service providers to mitigate apparently illegal traffic from MV Realty and PhoneBurner Inc., a power dialer whose software left prerecorded messages using MV Realty's script. The FCC said the Traceback Consortium traced a substantial volume of apparently unlawful solicitation calls to homeowners on the National Do Not Call Registry. The same day, the Bureau warned Twilio Inc., which it said was apparently originating the calls, that its traffic could be blocked and its Robocall Mitigation Database certification removed.

What this means for you

1. Scripts that stress benefits and skip costs invite deception claims.
2. Disclose material terms on the call, not only in the paperwork.
3. Dialer platforms and carriers are part of the chain, and the FCC put both on notice.