The real estate industry lacks no controversies on how fast or slow a company sells properties. However, 72 sold lawsuit, a legal battle, challenges a company that has stood out on how fast sellers and buyers process transactions raising crucial issues on its business practices and ethics.
The case brought up heated debates on how to hold real estate companies accountable and how real estate agents should conduct the buying and selling processes. Can we trust a system of companies that sells a house in 72 hours?
This article looks into allegations against 72 Sold, how the lawsuit impacts homeowners' and investors' trust and how homes are brought and sold moving forward. Let's dive in.
Understanding the 72-Sold Concept
72 Sold is a real estate company that has stirred controversy on its promises to sell properties using its unconventional approach. Greg Hague, the founder, established the company in 2018 and marketed it as a program that can sell a property within 8 days or less.
At its core, it operates in the United States in 38 markets giving it a nationwide reach. Also, it partners with the famous Keller William brokerage where it uses an auction-like strategy to create a buzz over the buyers' interest.
It ensures a quick and hassle-free approach to transactions involving real estate. While some of the sales have been a success, the company has been accused by over 1000 customers of deceptive marketing strategies that promise a lot while hiding the fees involved in the quick sale. The lawsuit demands disclosure of the contract terms and conditions to the buyers before signing and how it violates laws protecting consumers.
What is 72 Sold Lawsuit All About?
72 Sold lawsuit is a legal battle against a real estate service that guaranteed quick sales questioning its business practices. At its core, the suit questions undisclosed selling fees, quick sale promises and how it uses unique tactics to pressure homeowners to buy or dispose of a property in a quick sale.
Based on these allegations, the lawsuit brought up issues around its ethical practices and transparency that should exist in the real estate business. Moreover, the company is accused of not following the core National Association of Realtors (NAR) guidelines- like offering standardized commission structures across transactions as expected from listing brokers.
If the lawsuit is settled in favor of the company, brokers will no longer offer a buyer agent commission via MLS. This will enhance transparency and fairness in the real estate space. Buyers can now see any hidden fees that could be hidden in the 72 Sold house selling deals.
The lawsuit could be a win-win situation for sellers and buyers since the removal of the standardized commission encourages competition, creativity and innovation among real estate agents. This could help consumers access more opportunities to choose with a better understanding of what a great service is.
Issues Raised in the Lawsuit 72 Sold
The allegations aimed at exposing 72 sold, a company that is accused of using deceptive marketing strategies to achieve quick sales. Some of the allegations are:
1. Deceptive Business Practices- Homeowners were concerned that the company charged commissions and fees that were unexpected and not revealed in the contract. In the lawsuit, buyers and sellers expressed their dissatisfaction with the information offered upfront and termed the lack thereof as deception that caused financial harm to them.
2. Misleading Advertising Strategies- The company promises to sell properties in 8 days or less, a promise that is not always fulfilled. This misleads buyers and sellers from the beginning of the selling process raising their hopes in vain. While they promise to have an action-like selling strategy, it does not always work as expected.
3. Lack of Full Disclosure- Accusers of the company claim that the company hides crucial details on fees only to reveal them when sealing the deal. This leaves them financially drained and taken advantage of in the last stages of the sale.
4. Impacts Investors- The lawsuit impacts the real estate industry negatively since people may not prefer to invest in their stocks. Also, the value of the stocks can drop due to the impact of the lawsuit as investors view this investment negatively. This affects the future of the real estate stock value as many may withdraw from or decline to join the venture.
5. Limited Control - The accusers argue that the auction-like selling strategy relinquishes the selling process control from the agents and buyers. They skip the open house viewing step by potential bias, negotiate limiting the chances of securing the best terms for the sale.
6. Impacts Homeowners - With their business model, the company denies homeowners the privilege to enjoy their homes fully since they do not maximize profits due to hidden charges.
How 72 Sold Legal Team Responded
The company reaffirms its commitment to ensure transparency when buying and selling houses. Through its lawyers, the firm confirms that it's prepared to respond and defend itself against the allegations. Here are their argument points:
(I) Compliant Model - The company insists that it's compliant with the industry standards. Also, it claims that its structure has been misunderstood by its competitors who should instead take time to do so.
(II) Customers are a Priority - in their defense, the company insists that it endeavors to satisfy the customer- their priority. They further allude to the fact that they are open to feedback and work on resolving any issues that arise while transacting. Additionally, they are working with other agents behind the scenes to resolve all misunderstandings between fellow agents and homeowners.
Current State of the Lawsuit
The suit is ongoing. The court is examining evidence presented by fellow agents and homeowners as they gear toward a final judgment. Whatever the outcome, the decision will Revolutionise selling processes for the company and real estate agents in general. The lawsuit will clarify some ethical practices and transparency in the commission and fee structure.
Also, homeowners will be exposed to the need to read and understand the terms and conditions of a sale contract and seek legal advice before transacting.
How the Outcome Impacts Homeowners
Depending on the final judgment, Homeowners can:
- Receive compensation for misleading advertising strategies, pressure tactics and hidden fees in the form of money to cover the losses they incurred.
- Set Legal Precedents that protect current and future homeowners from such brokering firms.
- Enjoy favorable policy adjustments that would change business ethical and transaction practices in their favor.
Conclusion
Information from the 72 Sold Lawsuit Expose reveals gaps in how they handle their clients, transparency and unethical practices. While they may challenge the case and win, homeowners are now in the know of charges and commissions they may be exposed to when dealing with the company. While the auction style may work at times, houses may not be sold in the given time hence a little bit manipulative method to sellers.
Homeowners should go through the terms and conditions of the contract before transacting hence understanding the kind of business they get into. As the case unfolds, consumers get to understand the dynamics of the real estate business and how they should handle each transaction.
