December 12th, 2022 at 12:23 pm
Recently, we have been receiving reports that some unsuspecting homeowners have discovered a recorded lien against their property. In California, the lien is a “Memorandum of MVR Homeowner Benefit Agreement,” and it presumably secures a 40-year agreement to exclusively list the property for sale with “MV Realty of California.” MV Realty’s mailing address on the Memorandum is in Delray Beach, Florida. Regardless of the validity of the lien, its very existence may make it difficult for the homeowner to list the property for sale with someone else, or to sell or refinance the home.
But on November 29, 2022, the Florida Attorney General, Ashley Moody, announced that she has filed a lawsuit against the Florida-based MV Realty for deceptive, unfair, and unconscionable business practices. She is seeking both monetary relief as well as injunctive relief to end the deceitful practice.
According to the Florida AG, MV Realty offers homeowners a paltry $300 to $5,000 as a cash incentive to enter into the 40-year agreement. However, the homeowners apparently do not realize that, after accepting the payment, MV Realty files a 40-year lien against the property, and eventually, they will require a payment of 3% of the value of the home to release their lien. Attorney General Ashley Moody said, “For a company to prey on unsuspecting homeowners in a way that locks them into a 40-year obligation designed to siphon away equity from the property is disgraceful.”
For more information, Florida Attorney General Ashley Moody’s News Release (including a link to the Complaint) is available here.
-Many thanks for suggesting this week’s legal tip goes to Kyle Kemp (Santa Barbara and Ventura Regional Manager)!
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