Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
A Florida-based realty company cannot advertise or offer services in Indiana for at least five years as part of a consent judgment that satisfies a lawsuit filed by the office of Indiana Attorney General Todd Rokita.
According to the attorney general’s office, in September 2023, the office filed a complaint against MV Realty of Indiana, LLC, MV Realty Holdings, LLC, and various parties connected to it for allegedly conducting an aggressive and illegal robocalling and telemarketing operation targeting homeowners in Indiana.
The realty company reportedly offered homeowners cash payments in exchange for “a future interest in the sale of the homeowner’s real property.”
But these agreements were just disguised extensions of credit with implicit interest that would be paid back by the homeowner at a later date, the suit states.
Attorneys representing MV Realty did not respond to Indiana Lawyer’s request for comment through email and phone before Monday’s deadline.
In a press release issued on Monday, Rokita said the company unfairly locked residents into broker services contracts for a term of 40 years in exchange for “modest up-front cash payments.”
These contracts were filed in the homeowners’ chain of title in county recorder offices, which made it difficult for homeowners who wanted to refinance or get second mortgages, he said.
“Hardworking Hoosiers face burdens enough in financing housing costs without the added headache of dealing with deceptive schemes,” Rokita said. “By successfully putting a stop to these predatory practices and voiding unfair contracts, we have spared hundreds of homeowners from difficult and unfair circumstances. Our team will continue our work protecting Indiana consumers.”
As part of the consent judgment, the defendants agreed to several conditions:
- MV Realty must file a release of all homeowner benefit agreements within 30 days of entry of the judgment. This will impact more than 300 homeowners in the state.
- The company must also relinquish all rights to the agreements, deeming them void and unenforceable.
- MV Realty cannot advertise or offer services as real estate brokers or broker companies in Indiana for at least five years.
The lawsuit’s resolution resolves more than $800,000 in expected future receivables for the company, according to Rokita.
The case is Office of the Attorney General, State of Indiana v. MV Realty of Indiana, LLC et al, 1:23-cv-1578.
Please enable JavaScript to view this content.