The city of Detroit has initiated a lawsuit against RealToken LLC and its affiliates, claiming violations of housing standards across more than 400 residential properties.
Allegations Against RealToken
Detroit accuses RealToken and its affiliated individuals of failing to meet health and safety obligations as landlords. The lawsuit names co-founders Remy and Jean-Marc Jacobson among 165 related corporate entities.
Neglect and Deterioration of Properties
According to the complaint, inspections by city officials revealed major violations, including structural damage, rodent infestations, mold growth, sewage backups, and illegal utility connections. Of the 400 properties, 53 were deemed an immediate threat to tenant safety. The use of a network of limited liability companies has allowed the firm to evade accountability, leaving tenants in unsafe conditions.
City's Response and Implications
The city is seeking a court order to mandate urgent repairs and set up rent escrow accounts, while also holding the Jacobson brothers personally accountable for allegedly refusing to fund necessary maintenance. "This is the largest nuisance abatement case in our history," said Corporation Counsel Conrad Mallett, emphasizing that innovation does not exempt firms from legal responsibilities.
The Detroit case raises important questions about legal accountability in new real estate models and potential risks associated with tokenization.
