Colorado Slams Door on Allegedly Deceptive Real Estate Contracts

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  • Colorado AG Phil Weiser has reached a settlement with HomeOptions, Inc. and HomeOptions Colorado Real Estate, LLC (collectively, “HomeOptions”) to resolve allegations that the companies violated consumer protection laws by deceptively marketing predatory real estate brokerage agreements.
  • The AG’s complaint alleges that HomeOptions offered contracts with unfair and unconscionable terms, including 40-year durations, provisions binding the homeowner’s heirs, lien-like effects that clouded property titles, hidden fees and commissions, and penalties for using a competing real estate agent.
  • Under the settlement, HomeOptions is barred from enforcing the contracts’ early termination fees or breach provisions and must notify homeowners about their rights, remove “memoranda of understanding” that functioned as property liens, and report all such terminations to the AG’s office.
  • We have previously reported on similar enforcement efforts in other states, including a preliminary injunction secured by the Florida AG against MV Realty PBC, LLC and affiliates and a pending lawsuit in Minnesota raising similar claims against the same companies.
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