Latest news with #DarrenD.Farfante
Yahoo
2 days ago
- Business
- Yahoo
Thousands of Florida homeowners scammed by MV Realty could soon get justice
A South Florida real estate brokerage accused of trapping thousands of Florida homeowners into fraudulent contracts is now cancelling those agreements in accordance with a February ruling from a Hillsborough County judge. More than 9,000 Floridians signed 'homeowner benefit agreements' with MV Realty, giving the company the exclusive rights to list their homes. Many did not realize that those contracts lasted 40 years and allowed MV Realty to place a lien on their homes if they listed with another brokerage. The only way to get out of it was to pay a fee equivalent to 3% of the property's value. After the Tampa Bay Times reported on the scheme in 2022, the Florida Attorney General sued MV Realty over its deceptive business practices. In February, Circuit Court Judge Darren D. Farfante ordered the company to terminate any existing homeowner benefit agreements within 14 days. That didn't happen. In court filings, the Attorney General said the company violated the judge's injunction by changing the language in some of its contracts instead of terminating them fully. But now, MV Realty is starting to cancel the agreements. Since March, it has filed paperwork to terminate more than 1,000 contracts in Hillsborough, Pinellas and Pasco counties. Charles Gallagher, a St. Petersburg attorney who has represented several clients in cases against MV Realty, said this is helping to correct a 'stain on the public record,' that's prevented homeowners from selling their properties and taking out loans. 'You're kind of kidnapped in a way until those documents of record are terminated,' he said. 'So this is a super positive outcome for homeowners.' Some homeowners have already paid a fee to MV Realty to get out of their contracts. Gallagher said the judge's ruling does not entitle them to a refund, but it does give them a strong legal argument if they wanted to sue MV Realty to get their money back. The Florida Department of Business and Professional Regulation has suspended MV Realty's license, so it can no longer do business in the state. The Attorney General's lawsuit is still ongoing as MV Realty tries to convince the judge to dismiss two of the claims over deceptive advertising. Neither MV Realty nor the Attorney General's Office responded to requests for comment from the Times. Though the company is still continuing to operate unfettered in several other states, in Florida, 'I think this is the end of the line for them.' Gallagher said. 'I don't think they're going to be able to hurt homeowners again.'
Yahoo
13-02-2025
- Business
- Yahoo
Judge rules against Florida brokerage accused of scamming homeowners
A South Florida real estate brokerage accused of trapping vulnerable homeowners into predatory contracts will no longer be able to enforce those agreements in Florida thanks to a ruling by a Hillsborough County judge on Wednesday. The state sued MV Realty in 2022 for using deceptive business practices that impacted over 9,000 Florida homeowners. Earlier that year, the Tampa Bay Times reported on how the company used quick cash payments to lure homeowners into signing away the rights to list their homes. Many did not realize that those contracts, called 'homeowner benefit agreements,' lasted 40 years and allowed MV Realty to place a lien on their homes if they listed with a different brokerage. The only way to get out of it was by paying a fee equivalent to 3% of the property's value. Circuit Judge Darren D. Farfante called the contracts 'unconscionable.' The injunction he issued also prevents MV Realty from collecting fees or filing liens related to the contracts. The company now has 14 days to terminate any existing homeowner benefit agreements and notify Floridians who signed them. In a court hearing Monday, the company's lawyer told the judge that it had sent letters to 7,000 Floridians, offering them an opportunity to rescind their contracts. 'When companies, like MV Realty, unfairly and deceptively target Floridians, the Office of Attorney General will fight for them,' acting Attorney General John Guard said in a statement. 'In my almost six and a half years with the office, this was one of the worst abuses that crossed my desk,' he added, before thanking former Attorney General Ashley Moody for filing the case. The state is still seeking monetary relief, restitution and civil penalties against MV Realty. The court has yet to rule on those issues.
