Curbio is being sued by the DC attorney general who is alleging “scheme of deception, intimidation and fraud.” Curbio provides pre-sale home renovations in 55 different markets, while charging zero fees upfront. The benefit to the seller is obvious. The property is market ready at no expense to the seller, which will hopefully result in a higher price sale. The seller is required to list the home within a certain number of days after the work is completed.
What Curbio Does
Curbio, which was founded in 2017, is based in Maryland. The service that they provide is perfect for clients with lots of equity who cannot afford to make the upgrades in order for their home to sell for at least market or higher. The company’s model of setting the scope and price of a renovation then coordinating subcontractors has been well received. Curbio says that it is “completely aligned with agents” and focuses on “speed, quality and efficiency.” Over 4000 homeowners have used Curbio’s services.
Why Curbio is Being Sued
Curbio is being sued by the DC attorney general in the Superior Court of the District of Columbia, claiming that Curbio violated the Consumer Protection Procedures Act and the Abuse, Neglect, and Financial Exploitation of Vulnerable Adults and the Elderly Act. Schwalb wants a judge to order Curbio to stop breaking those laws, award undisclosed amounts of restitution and damages, and void liens against properties in Washington, D.C., among other things.
Another lawsuit alleged that Curbio did not wait for … completion of the project before issuing the mechanics lien against the seller’s property and telling her that she would be personally liable for over $130,000 for work that Curbio had never performed. A Los Angeles lawsuit claimed that Curbio took a year and a half to complete work that should have taken a few months. Curbio had sued the owner, saying he failed to list the home within the five business days after they said the work was complete, and it filed a lien against the homeowner. Curbio said it has updated its policies and, though it previously provided a price range for post-reno homes, it no longer includes a price requirement or reduction clause in contracts.
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Curbio’s Response
Curbio denied nearly all of Schwalb’s allegations and told Inman its record of serving over 4,000 customers shows why it has grown so rapidly.
“We strongly disagree with the assertions made by the D.C. attorney general’s office, and we have filed our response denying all allegations,” Curbio said in a statement. “Not only are the assertions without merit, but they also paint a false narrative of Curbio and the valuable services we provide to get homes fixed up and ready to sell while allowing customers to wait until the home sells to pay Curbio. We’ve completed thousands of projects with a strong track record of reliable and successful outcomes for real estate agents and their clients.”
On average, Curbio has filed a lawsuit against a client nearly once a month for the past five years, often also placing a lien on the property and alleging customers breached contracts by not listing the renovated home for sale after the company deemed the work complete, court records show.
Asked about complaints and lawsuits, Curbio has argued that most of its customers are satisfied.
