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LANSING – Michigan Attorney General Dana Nessel has secured an agreement resolving an investigation into the sale-leaseback company EasyKnock, Inc. for engaging in alleged deceptive business practices that targeted financially distressed homeowners. The agreement (PDF) creates an $85,000 settlement fund for impacted customers, requires business practice reforms for the companies involved, and prohibits those entities from conducting sale-leasebacks in the State of Michigan.
“Michiganders struggling to keep a roof over their heads shouldn’t be exploited by predatory companies,” said Attorney General Nessel. “I am proud of my office’s work in securing this settlement and protecting future homeowners from deceptive practices. When families fall behind on their mortgage payments or property taxes, they can become targets for bad actors offering magical solutions. Consumers must be wary of arrangements that require them to transfer ownership of their property, and they should thoroughly understand the long-term consequences before entering into any agreement.”
Attorney General Nessel’s investigation began in 2024, when the Department of Attorney General sent a notice of intended action ordering EasyKnock to cease and desist from engaging in unlawful business practices. EasyKnock allegedly offered “Sell & Stay” transactions to homeowners with low credit and high home equity. In the transaction, homeowners would sell their homes to EasyKnock and remain in their homes as tenants under a lease agreement with the company for up to five years. While EasyKnock represented that homeowners would receive 100 percent of their home’s value, the Department alleged that homeowners received only a fraction of their home’s value in cash after deductions were made for processing fees, closing costs, and repair holdbacks.
Homeowners had the option to repurchase the home from EasyKnock, but this likely required access to traditional financing that EasyKnock consumers typically lack. Repurchasing the home was made more difficult by annual increases in the monthly rent and repurchase price. Ultimately, if the homeowner could not repurchase their home, it was sold to a third party. EasyKnock recouped its initial investment through the second sale of the home and profits from processing fees, option fees, and rent collected during the time of the agreement.
EasyKnock went out of business in late 2024. Currently, ongoing sale-leaseback transactions are being serviced by NESE Property Management Company LLC, and the homes in Michigan are owned by EK Real Estate Fund I, LLC.
Under the agreement, previously identified consumers harmed by specific alleged business practices will receive a portion of an $85,000 settlement. NESE Property Management Company and EK Real Estate Fund I have also agreed to change business practices relating to a potential sale of the home to a third party, including limitations on items that may be deducted from the proceeds owed to the consumer. These entities have also agreed to comply with state and local housing laws and ordinances and to refund consumers who provide proof of paying rental registration or inspection fees that were the legal responsibility of EK Real Estate Fund I as the landlord. Consumers will also have the option of having on-time rental payments reported to credit reporting agencies.
For more information or to file a complaint with the Consumer Protection Team, contact:
Consumer Protection Team
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll-free: 877-765-8388
Online complaint form
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