CHARLEMONT — After settling a case with the state Attorney General’s Office, a Texas-based broker is permanently banned from purchasing real estate or engaging in real estate transactions in Massachusetts after allegedly engaging in a “lease-to-own” scam across Western Massachusetts, including in Charlemont.
Operating under the companies Anglefund Inc. and DTH-REO Inc., David Buttross, the owner and operator of the two agencies, allegedly purchased multiple foreclosed properties in the state and leased them to “vulnerable consumers under ‘lease-to-own’ or ‘contract-to-deed’ arrangements,” according to the Attorney General’s Office. The properties “had significant sanitary code violations and some were deemed unfit for habitation,” but were leased out to residents — who were then given the chance to purchase the property later — in spite of their conditions.
Buttross declined to comment on the record Friday and referred questions to his attorney. Buttross operates Buttross Groups, a larger real estate company in Austin, Texas, according to the company’s website. Anglefund was registered to the same address, while DTH-REO is registered to another location in Austin, according to the consent judgment issued in Suffolk Superior Court.
A Friday afternoon email to Buttross’ attorney, Bowditch & Dewey lawyer AiVi Nguyen, was not returned by press time.
The companies allegedly leased the properties to renters with terms that shifted the costs for repairs and maintenance to the tenant, which made tenants responsible for the upkeep to retain any necessary permits for living there. After leasing the properties, Anglefund and DTH-REO allegedly offered tenants seller-financing terms, but “failed to provide the proper disclosures to buyers under state and federal law and failed to perform an analysis of a borrower’s ability to pay,” which violates several state and federal regulations designed to protect consumers, according to the AG’s office.
In announcing the enforcement action, Attorney General Maura Healey said the companies were taking advantage of people’s hopes for purchasing their own home and created additional financial burdens by withholding information about the condition of the properties.
“These companies created immense financial and emotional hardships for hopeful homebuyers in Massachusetts,” Healey said in a press release. “We are very pleased to secure relief for the families affected, including providing an opportunity for home ownership, and stop these companies from doing business in Massachusetts again.”
In Franklin County, Anglefund had recently transferred the deed of 176 Main St. in Charlemont to new owners, according to the lawsuit filed by the AG’s office.
The AG’s office said it began investigating the companies in 2017 after it was discovered a condemned property in Avon was leased to tenants. The discovery led to finding at least 13 properties scattered across Massachusetts that the companies allegedly leased out to prospective buyers with “low income or poor credit.”
According to the AG’s office, it is illegal in Massachusetts to offer a property for rent or “lease-to-own” if that property is unfit for habitation and the seller fails to disclose the conditions to the buyer, as well as under the AG’s landlord-tenant regulations.
Chris Larabee can be reached at clarabee@recorder.com or 413-930-4081.