Missouri – Missouri Attorney General Catherine Hanaway has won an important legal battle against a Florida-based real estate corporation that was accused of deceiving homeowners. Her agency said that MV Realty Holdings, LLC, and its affiliates had to pay $307,000 in damages for breaking Missouri’s consumer protection laws.
The lawsuit was about contracts that MV Realty issued to homeowners in Missouri. The company gave them small amounts of money in exchange for agreeing to use MV Realty as their broker if they ever sold their properties. Investigators determined that the contracts had unreasonable terms that kept homeowners stuck for decades. A lot of people didn’t know that the agreements would last 40 years, might bind their heirs, and let MV Realty file papers with county clerks that limited property titles.
Attorney General Hanaway said that the decision was a win for families in Missouri and stressed that her agency continues to strive to safeguard residents from dishonest corporate practices.
“Our Office will not tolerate out-of-state fraudsters placing liens on family homes or charging bogus cancellation fees in unlawful contracts. We are proud of this win for Missouri homeowners, and our Office continues to seek justice for innocent Missourians who have been exploited,” she said.
As part of the settlement, MV Realty has to pay $307,000 back to 44 homeowners for charging them unfair termination costs. The company and its top executives are also not allowed to do any real estate business in Missouri for seven years. MV Realty also agreed to cancel all of its other contracts in the state and stop trying to get back almost $250,000 in advance payments given to 385 customers. This decision eliminates the cost of nearly $2.4 million in potential termination costs that people in Missouri would have had to pay.
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In March 2024, the Missouri Attorney General’s Office filed a lawsuit against MV Realty, saying that the company’s conduct broke the Missouri Merchandising Practices Act. The Consumer Protection Section’s investigators helped Assistant Attorneys General John Grantham and Nate Brancato lead the case.
Steven Reed, Chief Counsel of the Consumer Protection Section, said that contracts that give real estate brokers permanent or long-term listing rights are against state law. He urged residents who suspect they have been victims of similar scams to contact the Consumer Protection Hotline or file a complaint online at the Attorney General’s website.
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Officials added that the action is part of the state’s larger goal to protect consumers from dishonest or unfair business practices. The Attorney General’s Office thanked its legal team for their hard work and told other lawyers who want to work for the public to think about joining the state’s efforts to safeguard consumers.
