News Summary
Detroit city officials have launched the largest nuisance abatement lawsuit in the city’s history against Real Token, a cryptocurrency-based real estate firm, targeting over 400 distressed properties. The lawsuit cites public health threats and severe blight due to neglect, seeking $500,000 in fines and accountability from the firm’s owners, the Jacobson brothers. Real Token, which claims to offer profitable real estate investments, faces scrutiny as city officials emphasize the importance of responsible property management amidst concerns for tenant safety and community welfare.
Detroit – City officials have initiated the largest nuisance abatement lawsuit in the city’s history against Florida residents Remy and Jean-Marc Jacobson, who own the cryptocurrency-based real estate firm Real Token. This legal action specifically targets over 400 properties in Detroit that the firm manages, many of which are in a state of severe disrepair, contributing to rampant blight and posing public health threats.
The lawsuit, filed in Wayne County Circuit Court, also names 165 affiliated corporate defendants linked to the Jacobson brothers, focusing on public nuisance violations resulting from the neglect of properties under their management. Of the properties cited, 53 have been labeled as “priority one” due to their unequivocal detrimental impact on the health, safety, or welfare of the public.
Real Token, also known as RealT, operates by offering cryptocurrency investors real estate opportunities, claiming to provide average rental income between 6% and 16% per year. The firm has attracted more than 65,000 investors, a substantial portion of whom are outside the United States. Currently, the company is promoting 10 Michigan properties on social media, aimed solely at foreign investors, priced around $50.
City officials have reported that out of the 408 properties owned by Real Token, none possess a complete certificate of compliance, highlighting significant management deficiencies. City Councilman James Tate has noted his concerns after inspecting the condition of various properties, which exhibit severe issues such as leaking roofs, inadequate sewage systems, and stagnant water, which could pose additional health risks.
The lawsuit seeks to recover $500,000 in fines for nuisance and blight violations associated with the neglected properties. Beyond financial penalties, the city aims to ensure that the properties are brought into compliance with necessary health and safety regulations. Furthermore, the city seeks to hold the Jacobson brothers personally accountable for the conditions facing tenants and request court supervision for compliance processes concerning the vacant properties.
In response to the allegations, Real Token has indicated that the issues stem from actions taken by “unscrupulous property management companies” that mismanaged their real estate assets. The firm has stated it is taking steps to invest in its property management capabilities to remedy the existing violations and expedite necessary repairs.
Detroit city officials express a welcome to investment in the city’s real estate market but stress the importance of responsible property management practices. This issue is particularly critical in a city where approximately 60% of residents are renters, raising ongoing concerns about tenant rights and the standards of living in rental units. With the current lawsuit, Detroit is taking substantial steps to address the ramifications of mismanaged properties, setting a precedent for future real estate investments and compliance with local regulations.
The outcome of this historic lawsuit could potentially reshape the dynamics between cryptocurrency-backed investments in real estate and local governance, highlighting the necessity for both accountability and adherence to standards that protect the welfare of the community. As this case unfolds, it is likely to draw significant attention from investors, city officials, and residents alike, all of whom are directly impacted by the state of housing and community safety.
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Additional Resources
- Click On Detroit
- Wikipedia: Real estate in the United States
- Detroit News
- Google Search: Detroit Nuisance Lawsuit
- Free Press
- Google Scholar: Detroit Real Estate Lawsuit
- The National Herald
- Encyclopedia Britannica: Real Estate Law
- Free Press
- Google News: Detroit Real Estate Firm
