What Can We Learn From a Big Brother Contestant? The Importance of Reviewing Broker Agreements

Named the most villainous Big Brother contestant, Amanda Zachman (who went by “Zuckerman” on the show) was sued individually and through her company by the Florida and Pennsylvania’s Attorney Generals for running a homeowner benefits scam. Yikes!!

Zachman’s company, MV Realty, marketed these wacky Homeowner Benefit Agreements (HBA) to thousands of homeowners in Florida and nationally. The HBAs had a term of 40 years and stipulated that if homeowners breached the agreement, MV Realty would be entitled to collect 3% of the market value of the property.

A breach would occur if the homeowner:

• Listed their home with someone other than MV Realty
• Transferred the ownership to someone else

The agreements were binding on the owner’s heirs, successors, and assigns. A Memorandum of Homeowner Benefit Agreement was recorded in the public records and contained an agreement that the HBA constituted a “covenant running with the land.” Double Yikes!!

Essentially, these are very long, very invasive broker agreements that were recorded with the County. In exchange, MV Realty paid these homeowners between $400 to $700.

The lawsuit against Zachman alleged that she and her company violated the Florida Deceptive and Unfair Trade Practices Act by:

• Burying details in the fine print
• Misleading homeowners by telling them that there is no risk or cost to them unless they sell

Over 1,000 unsuspecting homeowners claimed to be scammed by Zachman, and the Court agreed. This week, the Judge entered a Summary Judgment against MV Realty and Zachman.

So what can we learn from this once a villain, always a villain?

We can discuss the FL broker’s agreements. These are the agreements a seller signs with their realtor to list their homes. In August of 2024, the standard FL Buyer Broker’s Agreement (last modified in 2016) was updated to comply with the new National Association of Realtors settlement guidelines.

Florida Realtors provides 4 different broker agreements, differing in the type of representation provided by the Broker:

1. Single agent
2. Transaction broker
3. Single agent with consent to transition to transaction broker
4. No brokerage relationship

Given the various forms, the complexities in the agreements, and the time commitment involved in the transaction, it is very important that a seller has an attorney review the agreement BEFORE they sign it.

The realtors do an excellent job and generally, the agreements are appropriate and correct, but there are a few sections or sometimes an errant document (see Zachman’s agreements above) that warrant additional discussions. An attorney can review the agreement for you and ensure that:

• You are signing what you think you’re signing
• There aren’t any surprises

So, there you have it, we learn again that “reality” in reality TV may be a thing if you’re portrayed as a villain in a show. We also learn that signing broker’s agreements warrants an attorney’s review, just in case.