EasyKnock,
which
offers
sale-leaseback
solutions
to
homeowners,
announced
a
legal
victory
in

Texas
on
Wednesday
as
it
was
awarded
more
than
$153,000
by
an
arbitrator.
The
company
has
been

fighting
legal
battles
on
multiple
fronts
through
a
series
of
consumer-initiated
lawsuits
and
actions
by
regulators
in
several
states.

The
arbitrator’s
decision,
issued
in
U.S.
District
Court
in

Dallas,
must
be
confirmed
by
a
judge.
The
ruling
states
that
EasyKnock’s
sale-leaseback
agreement
was
a
“valid
and
enforceable
contract,”
and
the
total
amount
awarded
includes
back
rent
owed,
late
fees
and
attorneys
fees.

“We
are
thrilled
with
the
arbitrator’s
ruling,
which
affirms
the
integrity
of EasyKnock’s
business
model
and
clearly
identifies
our
sale-leaseback
as
a
true
sale,”
co-founder
and
CEO

Jarred
Kessler
said
in
a
statement.
“This
victory
is
a
bold
statement
that
EasyKnock
operates
in
full
compliance
with
the
law
and
provides
a
valuable,
lawful
option
for
homeowners
to
access
their
equity.”

The
case
dates
back
to
2019,
when
homeowners
Randy
Sitzman
and
Anne
Sadovsky
Sitzman
agreed
to
sell
their
home
to
EasyKnock.
In
exchange,
EasyKnock
agreed
to
pay
off
the
existing
mortgage
balance
of
about
$229,000
and
unpaid
property
taxes
of
more
than
$9,000,
along
with
a
cash
payment
of
roughly
$75,000.
The
sale-leaseback
agreement
allowed
the
Sitzmans
remain
in
the
home
and
pay
rent
of
$4,467
per
month
for
the
initial
12-month
term,
with
options
to
renew
the
lease
each
year
at
higher
rental
rates.

According
to

legal
documents,
the
couple
later
asserted
that
the
sale-leaseback
contract
was
a
“disguised
loan”
under

Texas
law.
They
filed
suit
against
EasyKnock
in
October
2021,
declaring
that
the
company
had
no
right
to
title
or
ownership,
along
with
violations
of
the
Truth
in
Lending
Act,
allegations
of
fraud
and
other
charges.
The
documents
also
show
that
the
plaintiffs
have
been
living
in
the
home
without
paying
rent
since
May
2023,
having
racked
up
about
$74,000
in
arrears
to
that
point.

The
court
ordered
the
case
to
be
moved
into
arbitration,
where
the
arbitrator
rejected
the
claims
of
fraud
and
misrepresentation
and
awarded
compensation
to
EasyKnock
late
last
month.

The
case
represents
a
victory
for
EasyKnock,
which
has
faced
criticism
for
its
sale-leaseback
model
in
several
states.
As
of
July,
the
company
was
defending
itself
from
consumer
lawsuits
in
Texas,
Maryland,
South
Carolina,
Pennsylvania
and
Ohio,
while
state
regulators
in

Massachusetts,

Michigan
and

Connecticut
had
also
taken
action.

At
the
end
of
last
year,
EasyKnock
agreed
to
permanently
end
its
sale-leaseback
program
in
Massachusetts
and
paid
$200,000
to
the
state
as
part
of
a
settlement.

In
May,
Michigan
Attorney
General
Dana
Nessel
took
action
by
filing
a

cease-and-desist
order
against
the
company’s
sale-leaseback
practices
in
the
state,
alleging
that
EasyKnock
targeted
“financially
distressed
homeowners
with
low
credit
and
high

home
equity.“

That
was
followed
soon
after
by
a

separate
case
in
Texas
in
which
a
homeowner
accused
EasyKnock
and
its
subsidiary


Ribbon
Home
of
deceptive
practices.
She
claims
the
companies
moved
to
evict
her
even
after
she
had
made
payments
for
three
years
and
saw
significant
appreciation
in
the
value
of
her
home.

“EasyKnock’s
sale-leaseback
solution
continues
to
provide
a
non-lending
alternative
for
homeowners
facing
financial
difficulties,”
Kessler
said.
“[This
week’s]
ruling
reaffirms
that
our
model
is
not
only
innovative
but
also
entirely
legal.
We
are
committed
to
helping
more
homeowners
secure
financial
stability
through
our
transparent,
fair
sale-leaseback
agreements.”

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