On November 7, the Missouri Office of the Attorney General announced a consent judgment resolving claims that a real estate brokerage firm and its affiliates violated the Missouri Merchandising Practices Act by engaging in deceptive and unfair practices. The complaint alleged the firm offered small upfront payments to homeowners in exchange for long-term exclusive brokerage contracts that imposed substantial termination fees and resulted in the firm filing memoranda on properties that, in effect, functioned as liens and often interfered with homeowners’ ability to sell or refinance their homes.

Under the consent judgment, the firm agreed to pay more than $307,000 in restitution for termination fees collected from homeowners. The agreement barred the firm and its leadership from conducting real estate brokerage activities in the state for seven years. The firm also agreed to abandon all outstanding contracts in the state and to not pursue repayment of upfront fees or additional termination fees. This, in effect, relieved Missouri homeowners of approximately $2.4 million in potential termination fees and canceled outstanding obligations on approximately $250,000 in upfront payments.