Florida Secures Order Blocking Enforcement of Real Estate Agreements

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  • Florida Attorney General’s Office has secured a permanent injunction against MV Realty PBC, LLC and affiliates (collectively, “MV Realty”) prohibiting it from enforcing certain real estate agreements that the court concluded contain terms that violate state consumer protections laws.
  • The complaint alleged that MV Realty used leads to find consumers looking to refinance and aggressively market to those consumers contracts called Homeowner Benefit Agreements (HBAs). The HBAs allegedly contained undisclosed and oppressive terms, including imposing fees if title transfers or if the home is sold absent MV Realty involvement; binding homeowners for 40 years; containing one-sided arbitration clauses; and purporting to give MV Realty the right to enforce the agreement as a covenant that runs with the land.
  • The court held that the HBAs are procedurally and substantively oppressive and unenforceable under state consumer protection laws. The order prohibits MV Realty from enforcing the HBAs in Florida; attempting to collect any early termination fee or other payment for breach of an HBA; or encumbering properties subject to an HBA.
  • We have previously reported on Minnesota’s lawsuit against MV Realty raising similar claims.
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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