News Summary

Approximately 800 homeowners in Nevada are entangled in long-term contracts with MV Realty, despite new legislation outlawing controversial listing practices. Homeowners were drawn in by upfront payments but are now facing significant fees to cancel these agreements. Although a ban on such contracts was enacted, existing agreements remain valid, leaving many, particularly the elderly, feeling trapped and vulnerable. Nevada’s Attorney General has received numerous complaints about MV Realty, which has paused new agreements amidst legal challenges. Homeowners are advised to seek assistance if they discover these binding contracts linked to their properties.

Las Vegas

Approximately 800 homeowners in Nevada remain bound by long-term contracts with MV Realty, a Florida-based real estate company, despite new legislation outlawing controversial listing tactics. These long-term agreements, effectively 40-year exclusive listing contracts, require homeowners to use MV Realty as their listing agent, trapping many in unfavorable conditions.

In 2022, homeowners like Terry Arnold were enticed to sign contracts by promises of upfront payments, with Arnold receiving $1,500. However, many homeowners only discovered the long-term nature of these agreements when attempting to make significant financial decisions, such as applying for a business loan. To cancel these contracts, homeowners face steep fees, typically around 3% of the home’s value. Arnold is struggling with a potential cost of at least $17,000 just to lift the lien from her property title.

The practice of signing these long-term agreements was made illegal in Nevada in 2023, yet existing agreements were not retroactively voided. Assemblymember Heidi Kasama, who sponsored the bill banning such contracts known as NTRAPs (non-title recorded agreements for personal service), expressed concern for many homeowners who remain unaware they have signed potentially binding agreements.

Since the law’s enactment, Nevada’s Attorney General’s office has received numerous complaints regarding MV Realty, but no further comments have been issued. A recent investigation identified 818 NTRAPs recorded across the state, primarily affecting homeowners in Clark County.

MV Realty has temporarily paused entering new agreements amid legal challenges asserting the business model’s legality and benefits. In a recent multistate lawsuit settlement involving states like Florida and California, MV Realty agreed to refund affected homeowners and release them from liens. However, concerns have been raised that the language in the new Nevada law may not be strong enough to release existing liens retroactively.

Homeowners, particularly the elderly, are reported to be the most at risk of unintentionally signing these long-term agreements, leaving them feeling trapped. Arnold, a widow, has described her situation as feeling like a “prisoner in her own home,” as her credit score has also taken a hit due to being bound by the contract.

Given the complexity and potential pitfalls associated with these agreements, homeowners are advised to contact the state attorney general’s office if they learn of any NTRAPs linked to their property. As of now, 16 states have taken legislative action against similar practices, reflecting a growing movement to protect homeowners from such contract tactics.

The increasing awareness and legislative action will hopefully bring relief to the affected homeowners in Nevada and beyond.

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HERE Resources

Additional Resources

• Las Vegas Review-Journal
• Wikipedia: Real Estate
• Nevada Current
• Google Search: Nevada housing laws
• Tahoe Daily Tribune
• Google Scholar: Real Estate Contracts
• Real Estate News
• Encyclopedia Britannica: Contract Law
• National Mortgage News
• Google News: MV Realty

Author: STAFF HERE LAS VEGAS WRITER

LAS VEGAS STAFF WRITER The LAS VEGAS STAFF WRITER represents the experienced team at HERELasVegas.com, your go-to source for actionable local news and information in Las Vegas, Clark County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Electric Daisy Carnival, World Series of Poker, and Consumer Electronics Show. Our coverage extends to key organizations like the Las Vegas Chamber of Commerce and Three Square Food Bank, plus leading businesses in hospitality and entertainment that power the local economy such as MGM Resorts International, Caesars Entertainment, and Las Vegas Sands. As part of the broader HERE network, we provide comprehensive, credible insights into Nevada's dynamic landscape.