Florida’s attorney general secured this court judgment after accusing the company of a “complex and deceptive scheme… swindling consumers out of their home equity.”
TAMPA, Fla. — Homeowners who claim they were deceived by a South Florida brokerage say they want restitution from a $3 million court-ordered judgment in the attorney general’s case against MV Realty.
The Florida Office of the Attorney General secured this judgment in December after a three-year lawsuit where the state accused the company of a “complex and deceptive scheme… swindling consumers out of their home equity.”
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At the center of the lawsuit were MV Realty’s Homeowner Benefit Agreements, which paid homeowners up to a few thousand dollars for exclusive listing rights. However, the contracts were for 40 years and filed as a memorandum in public records. The state alleged those filings acted like liens.
A Hillsborough County judge ruled last year that the contracts were “unconscionable,” making them “unenforceable.” The judge also ordered MV Realty to clear the memoranda, although some homeowners say they did not immediately see relief.
“They’re still holding $12,000 of mine, almost $13,000 — $12,700 to be exact,” Raleigh Chapman told 10 Investigates last April.
RELATED | MV Realty clears controversial 40-year contracts for all Florida homeowners, state says
Vivian Lopez, who testified in the case and spoke exclusively to 10 Investigates, says she was forced to pay MV Realty more than $16,000 after choosing a different realtor.
She’s one of more than 9,000 homeowners across the state who signed HBAs with MV Realty. She told 10 Investigates she hopes the state will share the $3 million settlement with homeowners who lost money in dealing with the company.
“I’m hoping everybody gets their money back,” she said.
10 Investigates asked the attorney general’s office how restitution would work if MV Realty made its June 30 deadline. The office did not immediately respond to our request. However, some are not optimistic about repayment.
RELATED | Hillsborough County judge rules against MV Realty, calls 40-year contracts ‘unconscionable’
“I think homeowners typically wouldn’t see any money at all” said attorney Charles Gallagher. “If there is a scenario where they don’t comply with a $3 million stipulated damages judgment and there’s the increased amount of the $18 million later, potentially there could be some amount of that to consumers, but I would have no expectations on seeing a dollar if I’m a consumer.”
Still, there are positives for impacted homeowners, Gallagher said.
“The true win is having that document that’s really hijacked your property now for years probably, having that removed from the public record, being able to sell your home, being able to mortgage it, being able to encumber it,” he said.
Legal experts also say this new court ruling sets a strong precedent for preventing other bad actors from harming homeowners and the assets they’ve worked so hard to protect.
Emerald Morrow is an investigative reporter with 10 Tampa Bay News. Like her on Facebook and follow her on X. You can also email her at emorrow@10tampabay.com.