Real Estate Firm MV Realty Found Guilty of Exploiting Homeowners

Results from our 3-month investigation into MV Realty, accused of tricking people into contracts – Action News JaxPhoto by(ActionNewsJax)

After nearly two years of legal proceedings, a Hillsborough County judge has ruled against MV Realty, a Florida-based real estate firm accused of exploiting homeowners through its controversial 40-year Homeowner Benefit Agreements. The court deemed the contracts “unconscionable” and sided with the Florida Attorney General’s Office, which had filed a 2022 lawsuit accusing the company of deceptive practices designed to bypass state laws.

Between 2018 and 2022, more than 9,000 Florida homeowners entered into long-term contracts with MV Realty in exchange for cash payments ranging from $300 to $5,000. In return, homeowners were bound to use MV Realty as their exclusive real estate agent when selling their properties. The contracts were recorded in public records, similar to liens, and homeowners who violated the agreement faced legal action and a penalty of three percent of the home's value.

“They held me hostage to where I could only do business with them,” said homeowner Celine Davidson. Davidson and many others were shocked by the binding nature of the contracts.

Presiding Judge Darren Farfante’s ruling revealed that MV Realty earned over $18.4 million in early termination fees, accounting for 41 percent of the company’s revenue. He stated that the company had “preyed on homeowners” and concealed or downplayed critical contract terms, including the obligation to pay three percent of the home’s value upon sale.

In response to the ruling, MV Realty’s attorney, John Gekas, argued that the court made an error. “It is never a comfortable position to state that a mistake has been made, but that’s exactly the position I find myself in this morning,” Gekas said during a Tuesday hearing.

The Florida Attorney General’s Office is now seeking financial restitution for affected homeowners and has requested the removal of the Homeowner Benefit Agreements from public records to clear property titles. Additionally, MV Realty could face further penalties, with the court set to make a decision soon.

This ruling follows similar legal actions in other states, including California, where a preliminary injunction was issued to prevent MV Realty from recording new liens and requiring the removal of existing ones. Attorneys general from at least nine states have filed lawsuits against MV Realty for its controversial business practices.

Attributions:
WSTP