Curbio to pay $7.5 million to settle lawsuit 

Pre-sale home renovation company Curbio has agreed to settle a consumer protection lawsuit by paying $7.5 million and changing its operations — including the way it discloses connections to real estate agents.

The suit, filed in Washington, D.C., claimed that Curbio "systematically deceived DC homeowners, trapped them in unconscionable contracts and performed overpriced, substandard work that took months or years longer than promised," according to a Sept. 12 statement from the D.C. Attorney General's office.

Maryland-based Curbio "targeted its services to elderly DC residents who are most likely to own fixer uppers with high levels of equity" and "encumbered homes with deeds of trust or liens, trapping homeowners who were trying to sell and move quickly," the AG's office said. 

What Curbio has to say: The company called the allegations "baseless" in a statement and settled the matter without admitting wrongdoing.

Curbio has earned significant industry acclaim, including a boost from the National Association of Realtors in 2019 when it was selected by Second City Ventures — NAR's strategic investment arm — for its REACH startup accelerator program. It also won the pitch battle at NAR's iOi Summit that year.

What's next for Curbio: The company agreed to pay $3.5 million in restitution and credits to nearly 200 homeowners in D.C. It also must pay an additional $4 million to the District of Columbia itself by 2025.

Business-related changes, which will be rolled out nationally, include:

• Eliminating "misleading marketing claims about risks, fees, speed of projects, vetting of contractors or expected returns on investments."

• Making sure consumers are aware of revenue-sharing agreements with real estate agents or brokerages.

• Providing a written contract with a detailed scope of work that can only be modified by written change orders signed by homeowners and Curbio.

• Developing a binding dispute-resolution process.