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HARTFORD, Conn. (WTNH) — The state legislature should ban “predatory,” long-term real estate agreements, Connecticut Attorney General William Tong urged on Thursday.
The law he’s advocating for came about after he said Florida-based MV Realty ensnared 400 Connecticut homeowners into deceptive real estate agreements, Tong said. The company had two licensed realtors in the state and would give people a few hundred dollars in exchange for the exclusive rights to list the homes for 40 years.
If the homeowner broke that agreement to sell their home, then the company would charge what Tong called a “draconian” penalty of 3% of the market price of the home. The agreements were also entered into property records as a lien.
“MV Realty preyed on hundreds of Connecticut homeowners with scam deals,” Tong said in a written announcement. “Their agreements offered small amounts of up-front cash in exchange for decades-long contracts that few people understood or even had the chance to review. Connecticut law should leave no doubt—these contracts must be banned and voided.”
He said the homeowners didn’t fully understand the agreements, weren’t given time to review them and signed the agreements using cracked iPads. Notaries also weren’t present.
Multiple states have sued RV Realty, which has filed Chapter 11 bankruptcy. Tong is also seeking restitution for the people targeted in Connecticut.
Tong is asking the state legislature to create a law that would make similar agreements illegal, and to eliminate the ones already in place. The legislation would limit the agreements for one year, and would ban them from being included on land records.
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This article was originally published by a www.wtnh.com . Read the Original article here. .