State lawsuit advances against Florida realty company accused of 'swindling' homeowners with 40-year contracts

When MV Realty offered Vivian Lopez of Riverview, Florida, $1,445 in exchange for exclusive rights to be her realtor if she ever decided to sell her home, she thought it sounded like a good deal — especially since she didn’t plan to move anytime soon.

So, she took the money and signed on the dotted line.

Less than one year later, she’s facing $14,483 in fees, and the company has filed a lawsuit to place a lien on her home.

"It's been extremely stressful,” she said.

Lopez is one of the thousands of homeowners across Florida who took part in MV Realty’s Homeowner Benefit Program, which gives homeowners up-front cash if they agree to let the company be their exclusive realtor.

However, many don’t realize the contract for the program lasts 40 years and gets filed with the local courts as a public record. Attorneys say this filing operates like a lien on the homeowner’s property and clouds the title.

“What happens to the homeowner…if they go and try to sell the property through a different realtor not associated with them, MV Realty sues the homeowner for what we call an equitable lien against the property,” foreclosure attorney Ryan Torrens told 10 Investigates in December. “They ask for attorney's fees and…3% of the total value of the home, and that value is determined by MV Realty only.”

Homeowners across the state have been sharing their stories with 10 Investigates since last year.

Nicole McLean and Lawrence Grenier of Holiday said they almost lost their home due to the fines and fees they incurred dealing with MV Realty. The company filed a lawsuit against the couple last year. Several months after our report, MV Realty dropped the lawsuit.

“They’re preying on the poor,” Grenier said.

Lopez said she also feels MV Realty took advantage of her when she decided to sell her home. She says the company’s agents did not work hard enough to get a buyer, and when she switched realtors, MV Realty sued for an equitable lien against her property.

“We had one open house and no showings. I had the house on the market for like six months,” she said.

The company says Lopez faced legal action because she violated the Homeowner Benefit Agreement’s terms that require the company to represent the seller for six months.

A company spokesperson said in a statement:

"Ms. Lopez is a Homeowner Benefit Program participant. She was paid over $1400 by MV as compensation for the exclusive right to list her home. Ms. Lopez chose to list her home with another real estate company. Once MV contacted her regarding the listing, she agreed to take it down only to relist her home again in breach of her contract.

"Ms. Lopez accepted MV’s payment and knew her obligation, yet willfully violated her agreement."

Lopez’s new agent tells a different story, saying the six-month listing agreement with MV Realty had expired.

“She confirmed that her agent told her it was over,” she said. "For Vivian to put her home on the market with an agent for six months and only have a handful of showings and very little communication, it's just — it's very disappointing."

After filing suit against homeowners across the state, MV Realty had its own day in court before a Hillsborough County judge in early May.

It came after Florida Attorney General Ashley Moody filed a lawsuit against MV Realty in November, accusing the company of “swindling consumers out of their home equity.”

In response, MV Realty filed a motion to dismiss the case, saying the allegations are “insufficient” and don’t amount to “false, fraudulent, deceptive, unfair or unconscionable business activity."

In early May, that motion was heard before a Hillsborough County judge, where the attorney general's office called the company's business model "corrupt."

"We are suing on this entire business model, which is corrupt and horrible," said Ellen K. Lyons, special counsel for the Florida Office of the Attorney General.

An attorney representing MV Realty argued the attorney general's lawsuit goes too far. 

"We think this is an overreach by the attorney general. And if you look at the contract, the contract's clear," attorney Chris Oprison told 10 Investigates after the hearing. "Everybody knew what they were getting into when they signed the contract. They might not like it, but that doesn't make it an invalid contract."

A spokesperson told us in an email that “MV Realty remains confident that the Homeowner Benefit Agreement fully complies with the law” and “we hope to work with policymakers in Florida to address concerns.”

The company also said MV Realty has “voluntarily and temporarily paused entering into any new agreements.”

It's a move that could help some, but it could be too late for those like Lopez.

"It's actually really heartbreaking,” Lopez said. “But I hope that they get shut down and I hope that this goes away because I should not have a lawsuit for something that, again, they deceived me by."

Attorney Ryan Torrens warns homeowners to never sign any legal agreement without speaking to an attorney first.

"[That's] even if you don't have a lot of resources, because we know lawyers can be expensive and that can scare people from even calling many, many lawyers," he said, adding that many offices offer free consultations.

He also says to be wary of words.

"Do not believe what the person who's asking you to sign the agreement is telling you because in Florida, what the courts typically look at is what's in the actual language of that agreement," he said.

Another tip from Torrens: an annual title search to make sure your title is clear and there aren’t any additional mortgages on your property. Additionally, if you do face a lawsuit, Torrens says it’s imperative that you file a response within 20 days.

"If you do not file that within 20 days from the day you were served with that lawsuit, you lose that lawsuit automatically. You could end up with a lien against your home confirmed by a judgment of the court if you don’t respond timely,” he said.

The attorney general's case against MV Realty is expected to go to trial. Dates are being finalized.

Emerald Morrow is an investigative reporter with 10 Tampa Bay. Like her on Facebook and follow her on Twitter. You can also email her at emorrow@10tampabay.com.