Florida Judge Body Slams MV Realty By Calling Their 40-year Contracts With Senior Citizens “Unconscionable”
After a nearly two-year legal battle, a Florida judge body slams MV Reality in a brutal ruling. Hillsborough County Judge Darren Farfante accused MV Realty of “swindling consumers out of their home equity.”
He also called MV Realty’s 40-year Homeowner Benefit Agreements “unconscionable.”
The ruling comes out of a 2022 lawsuit from the Florida Office of the Attorney General. The lawsuit also accuses the company of engaging in a complex and deceptive scheme that attempts to skirt existing Florida law.
Court documents show more than 9,000 Florida homeowners between 2018 and 2022 found themselves stuck in decades-long contracts with MV Realty. Homeowners received anywhere from $300 to $5,000 cash in exchange for exclusive real estate listing rights.
The AG’s office says those contracts were recorded like liens. MV Realty would sue the homeowner for three percent of the home’s value if the homeowner violated the contract.
MV Realty made more than $18.4 million in early termination fees from consumers. He said that made up 41% of MV Realty’s total revenue.
Judge Farfante also said the company preyed on homeowners. He said they hid and downplayed terms of the agreement. In addition, he also said MV Realty misled homeowners about the obligation to pay 3% of the property’s value when sold.
MV Realty’s Lawyer Tells The Judge His Ruling Is Wrong!
MV Realty attorney John Gekas told Judge Farfante he got the ruling wrong.
Gekas had previously told the court:
The Florida AG’s office is seeking restitution for homeowners in the form of financial payments. They also want the court to order MV Realty to clear the public records of all Homeowner Benefit Agreements so homeowners’ titles are clear.
The court is expected to soon decide what penalties MV Realty will face.
This comes as California’s attorney general celebrates a preliminary injunction against MV Realty requiring MV Realty to remove current liens and to stop recording new ones. At least nine attorneys general have files suit against MV Realty and its business practices.
Read More About MV Realty On MFI-Miami.com
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