A Florida real estate company, MV Realty, is facing significant legal challenges after a Hillsborough County judge ruled its 40-year contracts with homeowners to be "unconscionable and thereby unenforceable." The ruling stems from a lawsuit filed by the Florida Attorney General’s office, which accuses the company of a deceptive scheme to defraud homeowners out of their equity.
Judge Rules Against MV Realty’s Contracts
A Hillsborough County judge has declared MV Realty’s Homeowner Benefit Program (HBP) contracts as "unconscionable as a matter of law." These agreements, which last for 40 years, were found to have terms that were hidden, downplayed, or omitted, effectively trapping homeowners. The company would charge a fee of 3 percent of the home’s value if a homeowner broke the contract, a practice that generated millions in revenue for MV Realty.
- MV Realty’s 40-year contracts were deemed "unconscionable and thereby unenforceable."
- The company allegedly hid or downplayed burdensome contract terms.
- Homeowners could face a 3% fee of their home’s value for breaking the contract.
Attorney General’s Lawsuit and Findings
The Florida Attorney General’s office filed suit against MV Realty in 2022, alleging a "complex and deceptive scheme" designed to circumvent Florida law and exploit homeowners. Court documents reveal that between 2018 and 2022, over 9,000 Florida homeowners entered into these long-term contracts, often receiving only a few hundred to a few thousand dollars in exchange for exclusive listing rights. These contracts were recorded in public records, acting like liens on the properties.
MV Realty Continues Enforcement Despite Ruling
Despite the judge’s September order, records indicate that MV Realty has attempted to collect thousands of dollars in early termination fees from homeowners. An email chain filed in court shows the company seeking over $9,000 from a Cape Coral resident shortly after the ruling. MV Realty has requested reconsideration of the judge’s order, with a future hearing scheduled for November.
Potential Justice for Homeowners
The Attorney General’s office is seeking restitution for affected homeowners, which could include financial payments and the removal of the contract recordings from public records to clear homeowners’ titles. This legal battle has drawn attention from other states, with at least nine attorneys general filing suits against MV Realty for similar practices. California’s attorney general has already secured a preliminary injunction against the company.
Sources
- Judge rules against Florida brokerage accused of scamming homeowners, Tampa Bay Times.
- Court docs: MV Realty still enforcing ‘unconscionable’ contracts despite judge’s order, wtsp.com.
- Thousands of Florida homeowners scammed by MV Realty could soon get justice, Tampa Bay Times.
- Hillsborough County judge rules against MV Realty, wtsp.com.