Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

‘Fixer Upper’ Chip Gaines’ real estate brokerage now a $1M-plus battleground

05/03/2017

Download PDF

If you’re familiar with the broker/owner behind Magnolia Realty in Waco, Texas, then you’re probably familiar with HGTV’s Fixer Upper and its stars — Chip Gaines, who along with his wife Joanna is the fixer-upper in question.

You’re probably less familiar with the names Richard Clark and John Lewis, but they were formerly two-thirds of Magnolia Realty, and in a lawsuit filed last week in McClellan County, Texas, Clark and Lewis are alleging that the real estate brokerage “owes its existence” to Chip Gaines’ relationship with them.

They also allege that “after secretly learning that Fixer Upper was to be fast-tracked for a one-hour premier on HGTV, Chip devised a plan to build the ‘Magnolia’ name into an empire without his business partners.”

To that end, Clark and Lewis are suing Gaines and several of his businesses for more than $1 million and “non-monetary relief” that includes either a “rescission of the sale” (a sort of “do-over” that would reinstate Clark’s and Lewis’ former 1/3-apiece ownership in Magnolia) or “fair value” for their ownership in the company.

Gaines had this to say about the lawsuit via Twitter:

Fyi: Ive had the same cell # 15 yrs.. same email for 20 yrs. No one called or emailed? 4 years later “friends” reach out via lawsuit.. humm

— Chip Gaines (@chippergaines) April 29, 2017

In the petition filed, Clark and Lewis say that Gaines planned to turn Magnolia into an empire; they compare what’s happened to the “Magnolia” name to Martha Stewart, the Kardashians, the Olson Twins and even say “the scope of the Gaines’ self-promotion of their ‘Magnolia Empire’ … arguably rivals Donald Trump’s ubiquitous brand marketing.”

(Yes — they dragged the President into it.)

At the basis of Clark and Lewis’ allegations is that Gaines “pressured” them to sell their interests in the brokerage — which they agreed to do for $2,500 each. The lawsuit states that “they would have never agreed to sell their membership interests in Magnolia Realty” if they had known about the fast-tracked HGTV premier.

And since the sale, the popularity of the show has turned the real estate brokerage into a hot property. “Since May 2013, Magnolia Realty has grown from employing one individual to over 93 real estate agents, and a support staff, and now operates in nearly every major city in Texas.”

Clark and Lewis are suing for breach of fiduciary duty, fraud by nondisclosure and statutory fraud. They’re requesting a declaratory judgment — a binding judgment from the court.

Email Amber Taufen

Like me on Facebook! | Follow me on Twitter!

Source: click here

Read More

INSPIRED, INTELLIGENT, INSIGHTFULL

STAY INFORMED WITH TIMELY AND INTERESTING ARTICLES FROM OUR BLOG, MISSION CHRONICLE. OUR ASPIRATION IS TO PROVIDE REALTORS AND OTHER REAL ESTATE INDUSTRY PROFESSIONALS WITH EXCEPTIONAL RESOURCES AND SHARE OUR KNOWLEDGE TO PROPEL YOU TO YOUR GOALS.

  • ProperSign is another step toward fully digital transactions

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • The 8 mistakes to avoid when designing a virtual home tour

    Now more than ever, virtual home tours are an invaluable asset for agents looking to educate and ins...

  • Real Grader helps keep agents’ online reputation on track

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • ClosingLock aims to lock down wire fraud

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • The top 3 priorities buyers place alongside location

    The past year has brought unparalleled attention to luxury properties in suburban and vacation marke...

  • CoreLogic launches consumer search with OneHome

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • What you need to know about 2020’s accelerated luxury market

    It’s safe to say that this year has not been the one we expected. In March, it was anybody’s gue...

  • Up your social media look with Feed Appeal

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • From video to VR: why VR home tours are a must-have

    This has been a year of challenges and transformation for all industries, and the luxury real estate...

  • ReferMe IQ uses old business to earn you new business

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

December 2020
Mon Tue Wed Thu Fri Sat Sun
 123456
78910111213
14151617181920
21222324252627
28293031  

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3

    Vote

    Loading ... Loading ...