INDIANAPOLIS – Attorney General Todd Rokita has prevailed in a lawsuit against a Florida-based real estate company that negotiated contracts with Hoosiers that allegedly violated Indiana law.
After soliciting customers via thousands of robocalls, MV Realty unfairly locked Hoosiers into broker services contracts for a term of 40 years in exchange for modest up-front cash payments. Memoranda of these contracts were filed in each homeowner’s chain of title in county recorder offices — thus creating problems for homeowners who wanted to refinance, obtain second mortgages, or undertake other transactions.
“Hardworking Hoosiers face burdens enough in financing housing costs without the added headache of dealing with deceptive schemes,” Attorney General 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 a consent judgment, MV Realty and its principals have agreed to the following conditions:
- To file a release of all homeowner benefit agreements attached to the property of more than 300 Hoosier homeowners within 30 days of entry of the judgment.
- That MV Realty would relinquish all rights to the agreements and that they are void and unenforceable.
- That defendants would not advertise or offer services as real estate brokers or broker companies in the State of Indiana for at least five years.
Attorney General Rokita’s team will notify each homeowner of the settlement by letter. Consumers can direct questions about the judgment to HPU@atg.in.gov.
In the lawsuit, the State of Indiana alleged that agreements with MV Realty signed by Hoosier homeowners were equivalent to high-interest mortgages, backed by recording the contracts against their real property. The resolution resolves more than $800,000 in expected future receivables for MV Realty, which the company has forfeited.
Following Attorney General Rokita’s lawsuit against MV Realty, the Indiana General Assembly enacted legislation outlawing similar contracts.
Attorney General Rokita expressed gratitude to staff members who worked on achieving this successful resolution, including Deputy Director of Consumer Protection Steven Taterka; Homeowner Protection Unit Section Chief Chase M. Haller; Deputy Attorney General Jennifer Linsey; Homeowner Protection Unit Investigator Molly Jefford; and Data Privacy Investigator Victoria Hardcastle.
The consent judgment is attached.
