The Colorado Division of Real Estate announced the move Monday, days after the beleaguered brokerage suffered a legal blow in California over 40-year contracts described as “predatory.”
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Just days after beleaguered brokerage MV Realty suffered a legal blow in California, officials in Colorado revealed that they have revoked the company’s real estate license in their state.
The Colorado Division of Real Estate announced the move Monday, saying that MV Realty “disregarded or violated license law and rules” and was the subject of “various complaints and concerns received by investigators.” In response, the Colorado Real Estate Commission met in early August and voted unanimously to revoke MV Realty’s license. The company was required to surrender its license Monday.
Legal documents Inman obtained from the commission further show that MV Realty will be required to pay a $20,000 fine, plus a 15 percent surcharge, for a total of $23,000.
Inman has reached out to MV Realty and will update this story with any comment it provides.
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According to local news station KUSA, complaints against MV Realty in Colorado began reaching officials two years ago. Ultimately, hundreds of homeowners ended up locked into what they described as predatory contracts that cost them money, KUSA reported.
At issue are MV Realty’s 40-year exclusive listing agreements. The agreements involve MV Realty — which is headquartered in Florida — paying a homeowner cash upfront. In exchange, the homeowner promises to use MV Realty as the transaction broker if they decide to sell their property any time in the next four decades. The agreements also stipulate that MV Realty gets to collect a commission on the sale.
These contracts have attracted significant pushback from officials in multiple states. In 2022, for example, Florida sued MV Realty over the agreements, describing them as part of “a complex and deceptive scheme.” And earlier this year, North Carolina banned MV Realty from operating in the state. Pennsylvania, Massachusetts and Ohio are also among the states that have sued MV Realty.
More recently, last week California Attorney General Rob Bonta announced that his office has secured a preliminary injunction against MV Realty. The injunction requires MV Realty to remove liens it has recorded against homes in California, to stop issuing new liens, and to stop enforcing its 40-year contracts while litigation in the state plays out.
Bonta’s statement characterized the preliminary injunction as a victory against a company that “engaged in a predatory scheme to lure vulnerable homeowners looking for financial help.”
In Colorado’s case, Colorado Division of Real Estate Director Marcia Waters said in a statement regarding MV Realty’s license that “a permanent revocation best serves the interests of justice.”
“All members of the public should be informed,” Waters continued, “of the importance and long-standing ramifications of executing any documents which encumber or purport to encumber their property before signing such a document.”
Update: This story was updated after publication with additional information about the penalties MV Realty faces in Colorado.
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