At first, Dr. Elizabeth Goodchild thought the certified letter she received from a Florida-based real estate company was just another scam.

Her late brother, who had suffered from cognitive impairment, had already fallen victim to several frauds before his passing—sending Western Union transfers to strangers from social media with addresses in distant countries like Costa Rica. But when she consulted her lawyer, she was shocked to learn that this wasn’t just another scam. It was legal.

The real estate company, MV Realty, was demanding nearly $10,300 before her family could proceed with selling her brother’s home.

In her eyes, the company had preyed on a desperate, vulnerable man.

“His ability to make a decision of that size was definitely impaired. And I believe that they were predatory in their approach,” said Goodchild, a Burnsville psychologist.

MV Realty, now permanently banned from doing business in Minnesota, operated under the guise of giving homeowners quick cash—but its contracts were laced with massive penalties, taking 3% of a home’s value if violated. According to the Minnesota Attorney General’s Office, the company employed deceptive trade practices that trapped unsuspecting homeowners in long-term financial burdens.

A Scheme Disguised as a Helping Hand

MV Realty lured homeowners with small upfront payments—often less than $500—under what it called a Homeowner Benefit Agreement. In return, the company secured exclusive rights to sell the property if it ever hit the market. What many homeowners didn’t realize was that MV Realty would then file a lien against their home, often without their knowledge, making it nearly impossible to sell or refinance without paying a hefty penalty.

While it seemed like a quick and easy way to get cash, the contracts were riddled with extreme and oppressive terms that homeowners didn’t fully understand—until it was too late.

After a state investigation, a lawsuit was filed in September, accusing MV Realty of deceptive trade practices and false advertising. The settlement, announced by Attorney General Keith Ellison, wipes out all existing MV Realty contracts in Minnesota, provides $20,265 in restitution to affected homeowners, and imposes a $1 million penalty if the company ever violates the agreement.

A Pattern of Predatory Practices

Despite denying the allegations, MV Realty has faced legal actions in multiple states, including Florida, Massachusetts, and North Carolina. In Minnesota, three top executives—Anthony Mitchell, David Manchester, and Amanda Zachman—are now barred from working as residential real estate brokers for five years, with Zachman personally fined $10,000.

“Minnesotans deserve to know what they’re signing up for, not just in some fine print buried a sub-contract away, but up-front and obvious,” said Ellison. He emphasized that hundreds of Minnesotans would never have signed the contracts had they been aware of the full consequences.

How MV Realty Operated

MV Realty aggressively solicited homeowners through phone calls and online ads, promising easy money with no risks. Once a homeowner showed interest, a notary would visit them in person, presenting a printed contract that lacked all the terms.

In sworn court testimony, consumers revealed they had no idea that:

• MV Realty would file a lien on their property.
• A $500 administrative fee was hidden in the contract.
• Breaking the agreement meant paying 3% of their home’s value.
• The contract lasted 40 years and could be inherited by their children.

The deception didn’t stop there. Former employees testified that they were instructed to mislead homeowners and withhold critical details. They were given strict scripts that prohibited them from explaining the true impact of the agreement.

Victims Speak Out

For Goodchild, the ordeal didn’t end with her brother’s passing. She discovered that her brother, who had already been scammed out of nearly $100,000, had unknowingly signed away part of his home’s value. After his death, MV Realty continued to target his family.

“They took advantage of my cognitively impaired brother, then continued to victimize our family after he passed,” she testified.

Brett Losinski, a fully disabled U.S. Army veteran injured in Iraq, shared a similar experience. Financial pressure led him to sign an agreement with MV Realty, believing it was a harmless gamble. He later realized it was a trap.

“I thought they were just betting that I might sell my home someday, but it was no gamble,” said Losinski. “They intended to make thousands of dollars from me, one way or another.”

A 2023 survey of Minnesota customers painted a damning picture—99% of them had no idea a lien had been placed on their home. Most were unaware of the 40-year contract term, the inheritance clause, or the excessive termination fees.

MV Realty’s Deceptive Double-Speak

When dealing with homeowners, MV Realty downplayed the impact of its liens. But when speaking to investors, the company openly admitted that it placed liens on every property within two days of signing a contract.

Investigators also discovered that MV Realty agents were required to make a minimum of 150 cold calls per week to be eligible for commission. Each contract earned them a $500 bonus—regardless of whether the homeowner understood what they were signing.

Key Takeaways:

✅ MV Realty is permanently banned in Minnesota after deceiving homeowners into long-term, high-cost agreements.

✅ Contracts lasted 40 years, included hidden liens, and transferred obligations to heirs. ✅ Victims included cognitively impaired individuals, veterans, and financially vulnerable homeowners.

✅ Other states have also taken legal action against MV Realty for predatory practices.

✅ Consumers are urged to read all real estate contracts carefully and consult legal professionals before signing.

MV Realty may have been stopped in Minnesota, but their tactics serve as a cautionary tale for homeowners everywhere. Always read the fine print—because the wrong signature could cost you your home.