Arizona Sues MV Realty, Alleging Predatory Real Estate Scheme Targeted Vulnerable Homeowners

Phoenix, Arizona - Arizona Attorney General Kris Mayes has filed a consumer fraud lawsuit against MV Realty of Arizona, LLC, MV Brokerage of Arizona, LLC, MV Realty PBC, LLC, related companies and several corporate officers, alleging that the real estate businesses operated a predatory scheme targeting financially vulnerable homeowners.

The lawsuit, filed under the Arizona Consumer Fraud Act and Arizona telephone solicitation laws, centers on MV Realty’s “Homeowner Benefit Program.”

According to the Attorney General’s Office, MV Realty offered homeowners quick cash payments in exchange for the exclusive right to act as their listing agent if the homeowner ever decided to sell. The state alleges the company failed to clearly disclose important terms, including that the agreement could last 40 years, bind heirs, and lead to large fees if the homeowner later tried to sell, transfer title or cancel the agreement.

The Attorney General’s Office also alleges that MV Realty recorded documents against homeowners’ property records. State officials say those recorded documents functioned like liens and could prevent homeowners or their successors from transferring property unless they paid MV Realty thousands of dollars in “Early Termination Fees.”

The recorded documents could also make it harder for homeowners to refinance or obtain home equity loans, according to the state’s complaint.

Attorney General Mayes said the company misled Arizona homeowners about the true nature of the program and profited from people who were already financially vulnerable.

The lawsuit alleges that MV Realty used aggressive online, digital and telephone marketing, including calls to consumers registered on the National Do Not Call Registry. The state says homeowners were not adequately told that the arrangement could place a long-term burden on their property.

The defendants named in the lawsuit include MV Realty entities and corporate officers Antony Mitchell, Amanda Zachman and David Manchester.

Arizona is seeking civil penalties, restitution for affected homeowners and court orders stopping the alleged practices. The state is also asking for the termination of recorded memorandums placed against homeowners’ properties.

For Arizona families, the case is a reminder to carefully review any real estate agreement that offers quick cash in exchange for future rights connected to a home. Homeowners should be especially cautious of contracts that last for decades, bind heirs, restrict refinancing or require large cancellation fees.

The Attorney General’s Office encourages anyone who believes they may have been a victim of consumer fraud to file a complaint with the office. Consumers may also contact the Consumer Information and Complaints Unit in Phoenix at 602-542-5763, in Tucson at 520-628-6648, or outside metro Phoenix at 800-352-8431.