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olorado regulators have revoked the license of a large real estate brokerage, MV Realty, over its marketing of predatory "homeowner benefit agreements" that may have ensnared hundreds of homeowners in the state. The Florida-based company agreed to pay a $23,000 fine and face public censure as part of the settlement.

    MV Realty's agreements allowed homeowners in financial distress to receive up to $5,000 in exchange for granting the brokerage exclusive rights to sell their home for 40 years. In return, MV Realty placed a lien on the homeowner's property, making it difficult to sell before the agreement expired. This meant that if a homeowner sold their median-priced Colorado home ($594,000), MV Realty could recoup nearly $18,000.

    The state investigated seven claims against MV Realty and believes over 900 homeowners may have been impacted by its agreements. Attorneys general from 12 states, including California and Illinois, have sued the company for allegedly misleading consumers. MV Realty has defended its agreements as innovative.

    State lawmakers passed a bill in 2023 that outlawed some terms included in MV's homeowner agreements, prohibiting brokerages from creating recordable liens without homeowners' consent. Colorado is one of 30 states to prohibit MV Realty from enforcing its homeowner agreements altogether. The company filed for Chapter 11 bankruptcy protections in 33 states last year.

    Regulators say the revocation process took less time than going to court and will protect consumers from future harm. "All members of the public should be informed of the importance and long-standing ramifications of executing any documents that encumber or purport to encumber their property," said Marcia Waters, director of DORA's Division of Real Estate.