The real estate market has always been a complex and constantly evolving industry, and unfortunately, it is also home to many scams and predatory practices. Recently, a new real estate scam has emerged where predatory real estate companies are offering homeowners a $1500 signing bonus to list their property with them with the promise that company will sell the property when the time comes. While this may seem like a great deal at first glance, the fine print of the listing agreement could end up costing homeowners much more than they bargained for.
In this scam, the listing agreement that homeowners sign with the predatory real estate company has a term of 40 years! However, many homeowners are not aware of this fact, or it hasn't been fully explained to them. This means that even if they forget about the listing agreement and decide to sell their property with a different real estate company, they will still owe the predatory company a commission when the property sells.
The predatory company will file a lien against the homeowner's property, which means that when the property is eventually sold, the predatory company will be entitled to a commission, even if they did not do anything to help sell the property. This can result in homeowners owing two real estate commissions, which can add up to a significant amount of money!
One example of a predatory real estate company that has been investigated for these practices is MV Realty in Florida. The company has been accused of filing liens against homeowners' properties and demanding commissions even though they did not help sell the property.
Fortunately, legislative action is being taken in Florida and other states to address these predatory practices. However, it is always important to be vigilant when signing any real estate agreements and to consult with a reputable realtor if you have any questions or concerns.
To avoid falling victim to this type of scam, homeowners should always read any real estate agreements carefully and ask questions if anything is unclear. It is also essential to do research on any real estate company or agent before signing an agreement with them.
While the real estate market can offer many lucrative opportunities, it is important to be aware of the potential for scams and predatory practices. Homeowners should always exercise caution when signing any real estate agreements and seek the advice of a reputable realtor if they have any doubts or concerns. By doing so, they can avoid falling victim to these types of scams and protect their assets and investments.