Hillsborough County is taking a firm stance against real estate fraud and deceptive business practices. A recent court ruling found a Florida real estate company’s contracts "unconscionable," while an alert system helped thwart a property theft attempt. These actions highlight the county’s commitment to protecting homeowners from exploitation.
Key Takeaways
- A Hillsborough County judge ruled against MV Realty, deeming their 40-year Homeowner Benefit Agreements "unconscionable."
- The Attorney General’s office accused MV Realty of a deceptive scheme to skirt Florida law and "swindle consumers out of their home equity."
- MV Realty profited significantly from early termination fees, making up 41% of their total revenue.
- A free property fraud alert system in Hillsborough County played a crucial role in notifying a homeowner of a fraudulent deed filing.
- A married couple was arrested for allegedly forging deeds and attempting to steal a home, thanks to the alert system.
MV Realty’s Unconscionable Contracts
A nearly two-year legal battle has culminated in a significant ruling against MV Realty. A Hillsborough County judge declared the company’s 40-year Homeowner Benefit Agreements "unconscionable," siding with a lawsuit filed by the Florida Office of the Attorney General. The lawsuit accused MV Realty of engaging in a deceptive scheme to exploit homeowners.
Between 2018 and 2022, over 9,000 Florida homeowners reportedly entered into these long-term contracts. In exchange for a small cash payment, ranging from $300 to $5,000, homeowners granted MV Realty exclusive real estate listing rights. The Attorney General’s office highlighted that these contracts were recorded in public records, acting like liens, and that violating the contract could lead to MV Realty suing for three percent of the home’s value.
Judge Darren Farfante’s ruling noted that MV Realty generated over $18.4 million from early termination fees, which constituted 41% of their revenue. He stated the company "preyed on homeowners" by downplaying or omitting crucial terms regarding the obligation to pay three percent of the property’s value upon sale.
Property Fraud Alert System Thwarts Theft
In a separate but related effort to protect residents, Hillsborough County’s free property fraud alert system has proven effective. This system, designed to notify homeowners of any documents filed against their properties, recently helped catch a married couple accused of forging deeds and attempting to steal a home.
Larry and Dreama Bilby, registered users of the alert system, received notification of suspicious activity on their property. This alert prompted law enforcement involvement, leading to the arrest of Michelle Cherry and Victor Rodriguez. Court documents revealed the couple filed a quit claim deed on the Bilby’s property and had allegedly communicated with real estate agents to sell it. Authorities found a forged deed in Cherry’s car at the time of her arrest. The couple faces numerous felony charges, with potential sentences of over 275 years in prison.