MV Realty Ends Controversial 40-Year Listing Contracts in Florida
MV Realty has begun terminating its contentious 40-year right-to-list contracts in Florida, following significant legal pressure and a February 2025 court order. This move comes after years of scrutiny and lawsuits alleging deceptive practices, providing relief to thousands of homeowners who entered into these long-term agreements.
Key Takeaways
- MV Realty is releasing Florida homeowners from their 40-year listing agreements.
- The company faced multiple lawsuits and allegations of predatory behavior regarding its Homeowner Benefit Agreements (HBAs).
- The agreements granted MV Realty exclusive listing rights for 40 years in exchange for a small upfront payment, often placing liens on properties.
- Several states, including Florida, have taken legal action against MV Realty, with some banning similar agreements.
The Controversial Homeowner Benefit Agreement
MV Realty’s business model centered on its Homeowner Benefit Agreement (HBA), which it marketed as a way for homeowners to receive a cash payment in exchange for granting the company exclusive rights to list their home for sale for 40 years. Key aspects of the HBA included:
- Exclusive Listing Rights: Homeowners signed over the right to list their property to MV Realty for four decades.
- Commission Structure: If the home was sold within the 40-year period, MV Realty was entitled to a 3% commission, separate from any buyer’s agent commission.
- Termination Penalties: Breaking the agreement or terminating it early required homeowners to pay MV Realty 6% of the home’s appraised value.
- Property Liens: The company often placed what amounted to a lien on the properties, complicating sales for homeowners.
Legal Battles and State Actions
MV Realty’s practices drew widespread criticism and legal challenges across the United States. The company, which once operated in 33 states, faced numerous lawsuits and regulatory actions:
- Florida Lawsuit: In November 2022, Florida’s Attorney General sued MV Realty, alleging violations of the state’s Deceptive and Unfair Trade Practices Act, impacting over 9,300 homeowners.
- Court Orders: A Florida judge ordered the company to cancel its contracts in the state in February 2025.
- State Bans: As of June 2024, 30 states had banned similar
Sources
- MV Realty to allow Florida homeowners out of 40-year contracts, HousingWire.
- Listing agreements terminated in Florida, RealEstateNews.com.