Bulletin: SLS2022007

Dear Associates:

MV Realty PBC, LLC a/k/a MV Realty, a real estate brokerage headquartered in Florida but operating in over 33 states, is promoting a “Homeowner Benefit Program” to homeowners wherein, according to its website, MV Realty provides an up-front cash payment to the homeowner in return for a future exclusive right to act as the listing agent when the owner decides to sell their home. The agreements will generally provide that if the homeowner decides to sell their home at any point during the next 40 years, they must use MV Realty as the listing agent and sets forth a minimum amount of commission due. To secure the performance of the agreement, MV Realty may record a Memorandum of the Agreement or a Mortgage/Deed of Trust in the land evidence records where the property is located.

It is believed that this type of program is being offered by MV Realty or its affiliates in at least 33 states but may be expanding into additional states. Currently, the Company is aware of the following states wherein the program is offered: Alabama, Arizona, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New York, New Jersey, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Utah, Tennessee, Texas, Virginia, Washington, and Wisconsin.

MV Realty does business under several different names, many of which contain “MV” or “MV Realty” along with the name of the state in which they are operating. For example, in Massachusetts the entity is MV of Massachusetts, LLC, a Massachusetts limited liability company.

To date, we have only seen memoranda or mortgages of this type involving MV Realty, but other companies may utilize similar programs and documentation.

Underwriting Guidance:

If your title search discloses the recording of a Memorandum or Notice relating to an exclusive Agreement to List, or a Mortgage or Deed of Trust securing performance of a Homeowner Benefit Agreement or similar type of arrangement, the recorded document must be identified in your Title Commitment in Schedule B, Part 1 Requirements (Schedule C in Texas), as a matter requiring the recording of full release or discharge of record. This applies to both purchase and refinance transactions.

If the document on record is a Memorandum of Agreement or Notice of Agreement, we require a release of the Memorandum or the Agreement signed by both the homeowner and the MV Realty entity or other real estate company named in the agreement. If the current owner is not the original party who entered into the agreement with the real estate brokerage company, please contact your Stewart underwriting counsel for further guidance.

If the document on record is a Mortgage or Deed of Trust, we require a release or discharge by the MV Realty entity listed as the mortgagee or holder of the Deed of Trust.

Additional documentation evidencing the authority of the person executing the release documents on behalf of the MV Realty entity may be required depending on specific state law requirements where the property is located. Any questions relative to the validity of the authority of the signatory should be directed to your Stewart underwriting counsel in the state where the property is located.

If a release cannot be obtained, or if you have reason to believe that the property owner may have entered into this type of agreement, but your title search does not reveal a recorded Memorandum or Mortgage/Deed of Trust, please contact your Stewart underwriter for further guidance.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.