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or many Coloradans, the American dream of home ownership has turned into a nightmare due to predatory real estate practices. Laura Walsh's experience with MV Realty is a prime example. While recovering from breast cancer treatment, she received a text message offering her $1,500 upfront in exchange for signing a contract allowing them to sell her home when she was ready. The agreement seemed straightforward, but it had long-term consequences.
Walsh used the cash to cover medical bills and other expenses, but when she decided to sell her home a year later, MV Realty's numbers were disconnected, emails went unanswered, and their storefront was empty. Despite doing no work to sell the house, MV Realty sued Walsh for nearly $20,000, claiming breach of contract.
MV Realty's Homeowner Benefit Program offered homeowners quick cash in exchange for exclusive rights to list their property when they decide to sell. The contract remains attached to the property even after the homeowner's death and can be enforced by filing a memorandum with the county clerk. This allows MV Realty to receive a commission whether or not they handle the sale.
Walsh is not alone; over 900 similar agreements were made across Colorado between 2021 and 2023. Poncietta Chavez, another victim, will have to die in her home unless she can find a way to get out from under the contract. MV Realty's agreements have drawn lawsuits in seven states, and Colorado legislators have taken action.
State Senator Nick Hinrichsen sponsored Senate Bill 77 to ban these contracts, which passed with bipartisan support. However, the law only prevents new agreements and doesn't help the 900 homeowners already locked into the 40-year contracts.
These cases highlight the importance of staying wary when working with real estate companies. Red flags include offers of "fast cash," misleading or confusing contracts, and long or difficult to exit terms. Always read the contract in full, consult a real estate attorney before signing, and be cautious of contracts that impose excessive penalties for canceling.
MV Realty is now banned from carrying out licensed business transactions in Colorado, while Florida's State Attorney General has prohibited the company from enforcing liens and collecting early termination fees from those already victimized.
