Colorado Real Estate Alert: What the MV Realty Lawsuit Means for You and Your Clients
A recent lawsuit filed by Colorado Attorney General Phil Weiser should serve as a significant wake-up call about the importance of transparency, ethics, and contract compliance in our industry.
On April 30, 2025, the Colorado Attorney General’s office filed suit against MV Realty. This Florida-based company locked hundreds of Colorado homeowners, many of them vulnerable or older, into long-term brokerage agreements with predatory terms and deceptive practices. These contracts often extended for 40 years, imposed massive penalties for early termination, and even bound the homeowners’ heirs.
As professionals who serve buyers and sellers daily, we must understand what happened and why it matters.
The Problem: Predatory Contracts and Deceptive Tactics
Between 2021 and 2023, MV Realty offered cash payments—often less than $1,200—in exchange for exclusive rights to act as a homeowner’s future real estate agent. These offers were marketed as “no-strings-attached” financial relief, but in reality, they came with:
- 40-year listing agreements
- Hefty early termination fees
- Clauses extending to the homeowner’s heirs
- Misleading marketing that claimed there was no obligation to sell
The contracts also placed liens on homeowners’ properties to enforce the termination fees, without clearly explaining these implications. In one instance, an active-duty soldier paid ten times the original cash offer to get out of the contract so they could refinance their home.
Why It Matters for Real Estate Agents
MV Realty's case highlights what happens when consumer trust is broken and regulations are ignored. It also reinforces something Canyon Title has long believed: compliance and client education are not optional but foundational.
As agents, you may encounter clients who unknowingly signed agreements like these or are confused about unusual title issues. This lawsuit is a reminder to always:
- Use clear, compliant contracts
- Educate your clients thoroughly
Partner with title and escrow professionals who spot red flags early
Canyon Title’s Commitment to Compliance
At Canyon Title, we stay informed on legal developments like this to support our agents and protect their clients. Our team regularly educates partners on title implications, lien enforcement, and proper disclosures—because we believe doing business the right way is the only way.
As this lawsuit unfolds, we’ll continue monitoring for updates and sharing insights. We’re here to help you build a reputation grounded in trust and professionalism.