Detroit Files Major Lawsuit Against Real Token Over Tenant Living Conditions

Overview of the Lawsuit

The City of Detroit has initiated a significant legal action against Real Token, a blockchain real estate firm based in Florida, along with its co-founders and numerous affiliates. This lawsuit, filed on July 2, targets over 400 residential properties in the city, alleging severe public nuisance violations. The city’s corporation counsel, Conrad Mallett, described this as the largest nuisance abatement lawsuit in Detroit’s history.

Tenant Experiences Highlighted

Residents have reported alarming living conditions, including properties with fire damage, lack of heat, and broken windows. One tenant has been without running water for two months, relying on bottled water for daily needs. Another resident faces issues with non-functional electrical outlets and poorly sealed windows. These dire situations have prompted the city to take action against Real Token, which has been accused of neglecting its responsibilities toward tenants.

Allegations Against Real Token

Real Token, also known as RealT, has been promoting a cryptocurrency model that allows global investors to purchase fractional ownership of properties in Detroit. However, the city claims that tenants are suffering due to the company’s mismanagement, leading to unsafe and unsanitary living conditions. This lawsuit follows an investigation by Outlier Media that uncovered these troubling issues.

City Officials’ Reactions

Detroit City Council members have expressed outrage over the neglect faced by renters. Council Member Angela Whitfield-Calloway emphasized the ongoing problem of poorly maintained properties and unresponsive management, particularly affecting vulnerable families. The council members are calling for accountability and systemic change to protect tenants from exploitation.

Real Token’s Defense

In response to the allegations, Real Token has attributed the issues to the property management companies it employed. The company claims it has been dedicated to providing safe housing and has faced challenges due to the actions of these management firms. They assert that they are actively working to address the problems and improve conditions for tenants.

Legal Proceedings and City Demands

The lawsuit outlines numerous violations of local building and health codes, with the city demanding that all properties involved undergo compliance inspections. The city is also seeking to halt evictions during the legal process and wants tenants to pay their rent into an escrow account until the issues are resolved.

Conclusion

This legal action underscores the ongoing struggle for safe and habitable housing in Detroit, as the city aims to hold Real Token and its affiliates accountable for the living conditions of its residents. The outcome of this lawsuit could have significant implications for tenants and the broader housing market in Detroit.

For further inquiries, please contact Nushrat Rahman at [email protected]. Follow her on X: @NushratR.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.