C
olorado has revoked the license of MV Realty, a Florida-based brokerage, due to its 40-year "Homeowner Benefit Agreements" that regulators deemed disregarded or violated state licensure laws. This decision comes as Minnesota joins 10 other states in filing suit against the firm.

    MV Realty's agreements, which have been at the center of controversy, require homeowners to give the company exclusive rights to sell their homes for 40 years in exchange for up to $5,000 in cash and a lien on the property. Homeowners are also charged 3% of their home's value to remove the lien.

    Colorado regulators concluded that MV Realty's business model disregarded state laws and rules, putting consumers at risk. In response, officials warned consumers about the importance of understanding the long-term ramifications of executing documents that encumber or purport to encumber their property.

    California has also taken action against MV Realty, securing a temporary injunction that prevents the company from enforcing its agreements in the state for six months. The court found that homeowners were intentionally misled by MV Realty and that the company's conduct imposed imminent irreparable harm on them. As a result, MV Realty is being ordered to stop violating state law and remove any liens it has recorded.

    MV Realty had previously defended its business model as "innovative," but regulators and attorneys general in multiple states have disputed this claim, arguing that the agreements are predatory and unfair to homeowners.