The Florida Attorney General’s Office has obtained an injunction against MV Realty, a real estate agency based in Florida, and its principals. The court order prohibits the company from enforcing Homeowner Benefit Agreements (HBAs) or collecting early termination fees from homeowners. Judge Darren D. Farfante of the 13th Judicial Circuit Court ruled that MV Realty’s actions violated the Florida Deceptive and Unfair Trade Practices Act, impacting over 9,000 homeowners in the state.
Acting Attorney General John Guard stated, “When companies, like MV Realty, unfairly and deceptively target Floridians, the Office of Attorney General will fight for them. In my almost six and a half years with the office, this was one of the worst abuses that crossed my desk.” He acknowledged former Attorney General Ashley Moody for initiating action against MV Realty and praised consumer protection lawyers for their efforts.
MV Realty targeted homeowners seeking quick cash alternatives by persuading them to sign contracts under which they would use MV Realty as an exclusive listing broker. These agreements included a 40-year lien on properties requiring homeowners to pay at least 3% of their home’s value to MV Realty. This obligation was enforced even if no listing services were provided by the company.
The company misled consumers into believing they would incur no costs until their homes were sold by MV Realty. However, hidden clauses in contracts required payments even if homes went into foreclosure. Additionally, MV Realty engaged in deceptive telemarketing practices by contacting individuals on the National Do-Not-Call Registry and leaving unsolicited voicemails.
The injunction bars MV Realty from enforcing HBAs or asserting any property interest related to these agreements in Florida. It also prevents them from filing lis pendens or recording documents indicating public notice of an HBA on properties involved with such agreements.
MV Realty is required to terminate all memoranda recorded on affected properties within 14 days of the injunction order or two days after notification by relevant parties needing termination for transactions involving homeowner properties.
Monetary relief and penalties against MV Realty are still pending before the court. Victims will receive information on applying for restitution.
