South Florida real estate broker, accused of locking thousands of Florida homeowners in fraudulent contracts, is canceling those contracts in accordance with a February ruling from a Hillsboro County judge.
Over 9,000 Floridians have signed “Homeowner Benefit Agreements” with MV Realty, giving the company the exclusive right to list their homes.
Many people weren’t aware that these contracts would last for 40 years, allowing MV Realty to place a lien in their home if they were listed in another brokerage. The only way out of it was to pay a fee equivalent to 3% of the property’s value.
After the Tampa Bay Times reported on the scheme in 2022, the Florida Attorney General sued MV Realty for its deceptive business practices.
In February, Circuit Court Judge Darren D. Farfante ordered the company to terminate the existing homeowner benefits agreement within 14 days.
That didn’t happen.
In the court application, the Attorney General said the company was violating the judge’s injunction by changing language in part of the contract rather than cease completely.
But now MV Realty is beginning to cancel contracts.
Since March, he has filed documents to terminate more than 1,000 contracts in Hillsboro, Pinellas and Pasco counties.
Charles Gallagher, a St. Petersburg lawyer who represents multiple clients in cases against MV Realty, said this helps to correct “public record stains” and prevents homeowners from selling their property and taking away their loans.
“You’ve been lured to some extent until the document on the record is finished,” he said. “So this is a very positive outcome for homeowners.”
Some homeowners have already paid MV Realty to get out of the contract. Gallagher said the judge’s ruling doesn’t give them the right to a refund, but would give them a strong legal argument if they want to sue MV Realty to get their money back.
The Florida Department of Business and Professional Regulation has suspended MV Realty licenses and is unable to do business in the state.
The Attorney General’s lawsuit is still ongoing as MV Realty attempts to persuade the judge to dismiss two claims about deceptive advertising.
Neither MV Realty nor the Attorney General responded to requests for comment from the Times.
The company still operates freely in several other states in Florida, but “I think this is the end of their line,” Gallagher said. “I don’t think they can hurt the homeowners again.”
