MV Realty and MVR Homeowner Benefit Agreements
We have received inquiries from agents and have become aware of recorded documents that might create possible rights of an entity called MV Realty or a recorded instrument identified as an MVR Homeowner Benefit Agreement. These agreements are an arrangement with the homeowner that may involve financial and listing rights for the property.
The recorded Memorandum is a summary of the entire agreement between the entity and the property owner, but it provides in pertinent part that “the obligations of Property Owner under the Agreement constitute covenants running with the land and shall bind future successors in interest in title to the Property.” To summarize, the position asserted in the Memorandum is that the Agreement binds not only the person signing the agreement but any successors in interest who acquire title subsequent to its having been recorded.
This article is not intended to evaluate the legal merits of the asserted interest nor the legal efficacy of the agreement, but simply to notify you that our experience and information is that these agreements are popping up in multiple jurisdictions across the country, and in the event MV Realty determines that its “rights” have been overlooked and a sale occurred subsequent to the recording without obtaining a release, they have been tenacious in seeking to enforce a lien, and their demand for a release or payoff is typically for a substantial dollar amount – thousands of dollars in excess of the sums paid to the owner at the time of recording.
In the event a Memorandum of Agreement involving MV Realty, or an affiliate thereof, or of an agreement of a similar nature appears in the title search, regardless of whether the transaction is a sale or a refinance, it is required that the Memorandum and the Homeowner Benefit Agreement identified in the Commitment be terminated. To do so, we will require a written payoff and release quote from the MV Realty entity of record. Any release must be total and absolute – releasing any and all interest in the subject property, not simply the rights as pertain to the specific sale or loan in contemplation. In addition, the Release must also include a Termination of the underlying Agreement.
Anytime there is any type of memorandum or similar instrument recorded, it must be resolved in order to provide clear title pursuant to the Contract. This is another reason that agents should at the time of listing order a title commitment.
Please note this article is for informational purposes only and should not be construed as legal advice. The facts and circumstances of each case, transaction, or matter can differ greatly. You should not use this information as a substitute for consulting with a licensed attorney. Barry L. Miller, P.A., and its attorneys, and staff, do not represent you unless you execute an engagement agreement with the Firm which confirms that representation.
Barry Miller Law is familiar with all aspects of real property law. If you, or someone you know, has legal questions concerning real estate, business or probate law, contact Barry Miller Law for assistance at 407-423-1700 or email us at info@BarryMillerLaw.com for a consultation.