South Florida real estate broker, accused of locking vulnerable homeowners in predatory contracts, will not be able to enforce those contracts in Florida thanks to a ruling by a Hillsboro County judge on Wednesday.
The state sued MV Realty in 2022 for using deceptive business practices that affected more than 9,000 Florida homeowners.
Earlier that year, the Tampa Bay Times reported on how the company would use quick cash payments to lure homeowners to close the right to list their homes.
Many people have said that these contracts, known as “homeowner benefits agreements,” last for 40 years and that MV Realty is listed in another brokerage, allowing them to place a lien on their homes. I was not aware of this. The only way out of it was to pay a fee equivalent to 3% of the property’s value.
Circuit Judge Darren D. Farfante called the contract “merciless.”
The injunction he issues will prevent MV Realty from collecting fees or filing liens related to the contract. The company currently has 14 days to terminate existing homeowner benefits agreements and notify Floridians who signed them.
At a court hearing Monday, the company’s lawyers told the judge that they had sent letters to 7,000 Floridians, giving the opportunity to withdraw the contract.
“When companies like MV Realty make Floridians an unfair and deceived target, the Attorney General’s Office will fight for them,” Attorney General John Gard said in a statement.
“In my almost six and a half years of office, this was one of the worst abuses that crossed my desk,” he added.
The state is still seeking financial relief, compensation and civil penalties for MV Realty. The courts have not yet controlled these issues.
