House Max accused of scamming Kansas homeowners in AG’s lawsuit
KANSAS CITY, MO. — Kansas Attorney General Kris Kobach filed a lawsuit against a Wyandotte County company, accusing it of “rampant consumer fraud.”
Kobach’s lawsuit alleges that House Max, a real estate company, CEO Jason Jones and purchasing manager Herbert Brown Jr. deceived vulnerable Kansas homeowners with false promises, leveraging their equity under the guise of fast, free and commission-free home sales.
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Kobach’s lawsuit alleges that instead of working for the homeowners, House Max locked them into one-sided contracts.
More specifically, the lawsuit says House Max and its CEO and purchasing manager sent thousands of unsolicited mailers containing “personalized checks” to Wyandotte, Johnson, Leavenworth and Miami counties. These checks were made with special cash offers for homeowners’ properties that House Max was allegedly interested in purchasing.
In addition to this claim, Kobach says House Max operated without the real estate licenses required for such action.
Kobach’s lawsuit also states that after homeowners responded to House Max’s mailings, the defendants would greatly reduce the offer by using claims of necessary repairs while hiding commissions, hidden fees, and secret cancellation policies.
But that’s not all. The state’s lawsuit also says House Max placed liens on consumers’ properties to claim a legal interest in the property, in some cases pressuring them to proceed with the sale even after they changed their minds.
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Kobach’s release said a state investigation showed the defendant’s commission was in some cases more than three times that of a typical real estate transaction.
In turn, the lawsuit seeks to stop the alleged deceptive practices, impose fines, and compensate all consumers harmed by the alleged scheme.
“House Max is a scam disguised as service,” Kobach said. “They sent fake checks to hardworking Kansas homeowners, promised a simple free real estate sale, and used intimidation and fake mortgages to obtain consumers’ equity. We allege they operated without proper licenses, misrepresented their offers, and concealed their fees and commissions. This lawsuit will hold them accountable and put a stop to their predatory operations.”
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