NASHVILLE, Tenn. (WZTV) — A severely disabled Middle Tennessee man finds himself on the wrong end of a real estate agreement that is now banned in Tennessee.
Shawn Ward doesn’t even remember signing this “right to list” agreement in Tennessee, but it is a nightmare he can’t wake up from.
If you don’t know what we are talking about you are better off. This “right to list” agreement is such a bad deal for a homeowner it has been banned in 19 states. But what if you signed before the ban? That is a complicated question.
Sean Ward doesn’t move well enough to work. His MS is debilitating. The only reason he has this home in Hendersonville is because when his grandfather died, his dad made sure he owned this home clear of any mortgage or lien. So, he could raise his kids and grow old knowing he would never be homeless.
That dream is in jeopardy.
“What’s your greatest fear? What are you afraid of?” FOX 17 News Dennis Ferrier asked.
“Losing my home. Being homeless,” said Mr. Ward
At some time, a representative from MV Realty knocked on Mr. ward’s door. Mr. Ward signed a document. The results were catastrophic. He signed something called a right to list agreement.
Elizabeth Blosser is the Vice President of the American Land Title association and has led the charge to ban these agreements.
“This is a big issue because over 25,000 people around the country have signed agreements that cost them up to 3% of their property value,” said Blosser. “So, what we saw happening in the marketplace was real estate brokerage firms would go to homeowners and pay them as little as $300 dollars to sign a listing agreement that could las as long as 40 years.”
If you cancel the agreement, Mr. Ward owes MV realty 3% of the value of the house. If you sell your house, MV realty gets a 6% commission.
To make it even worse, Mr. Ward thinks he never got any money at all for signing the agreement.
I mean they like said, they didn’t specify why they were there, who they were and then like maybe 20 minutes they were gone,” said Ward.
We could not reach anyone from MV Reality. A company not just banned in 19 states, but now being sued by nine states, while it has filed for bankruptcy in 22 states.
This couldn’t come at worse time for Mr. Ward, who recently met this woman, Donna Russell.
Russell has people lined up to fix his house and make it more disability compatible, but no one wants to invest until they are sure the house is Mr. Ward’s.
“We’re trying to correct some things that have been neglected regarding this home. And it’s very much within our reach to do that. But with this lien attached, the people that are willing to participate, are fearful of participation in investing their time and their finances, to do that with this type of document attached to their home,” said Russell.
However, because Ward signed the right to list agreement before it became illegal in Tennessee, he may still be legally bound to its terms.
The state attorney general’s office told FOX 17 News, Mr. Ward needs to hire a private attorney to fight the contract. Donna Russell hopes MV Realty will just release Ward.
“I want this company to satisfy this document on his home and release themselves from any attachment to his home so that he can be free and clear up and he can move on,” said Russell. “We have some things that have just been beautiful things that have come together to help this gentleman achieve a better quality of life.”
So, while this may be clear going forward in Tennessee, Mr. Ward remains stuck with some big unknowns. We will let you know if he gets some pro bono help to get out of this contract.
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