California officials have reached a sweeping settlement with Florida-based MV Realty — requiring the real estate company to void homeowner agreements, remove liens from properties and pay out millions of dollars.
The agreement resolves a lawsuit filed in December 2023 by California Attorney General Rob Bonta, along with the district attorneys of Napa and Santa Barbara counties.
Litigation alleged that MV Realty misled homeowners into signing long-term contracts in exchange for small upfront cash payments while placing liens on their homes that restricted future sales, refinancing and other transactions.
Under the settlement, MV Realty must cancel all homeowner contracts in California, individually terminate every lien it recorded against affected properties and reimburse homeowners who paid early termination fees.
The company must pay more than $1.3 million in consumer restitution and nearly $1.2 million in civil penalties — bringing the total judgment to about $2.5 million.
In addition, MV Realty, its CEO and chief operating officer are barred from engaging in California businesses requiring a real estate license for five years.
“We will not tolerate predatory conduct that targets vulnerable Californians and puts their homes at risk,” Bonta said. “This settlement delivers the relief we sought in our lawsuit, including full restitution for consumers and the complete undoing of the unlawful practices at issue. At a time when Californians are facing an affordability crisis, exploitation like this only adds pressure on households struggling to make ends meet — and it is unacceptable.”
Case background
MV Realty began operating in California in early 2022. State officials secured a preliminary injunction against the company in September 2024 that required it to terminate its liens — a decision upheld on appeal in December 2025.
A trial had been scheduled to begin June 10 in Los Angeles County Superior Court before the parties reached the settlement.
Homeowner Benefit Agreements from MV Realty offered homeowners between $300 and $5,000 in exchange for granting the exclusive right to list their homes if they were sold at any point during the next 40 years.
If homeowners chose another agent or attempted to end the agreement early, they faced a fee equal to 6% of the home’s appraised value. Officials have said liens tied to those agreements could interfere with property transfers, refinancing or home equity loans.
“MV Realty placed profits ahead of people by taking advantage of struggling homeowners and locking them into decades-long agreements by employing deceptive and unlawful business practices,” Napa County District Attorney Allison Haley said. “It was a privilege to work with our colleagues at the Attorney General’s Office and the Santa Barbara District Attorney’s Office in obtaining a settlement that holds MV Realty accountable, provides meaningful relief to impacted homeowners, and reinforces that California will take action against predatory practices that exploit the financially vulnerable.”
Other efforts to halt listing agreements
California lawmakers previously responded to similar business practices by approving legislation that took effect Jan. 1, 2024 — limiting residential exclusive listing agreements to two years and prohibiting such agreements from being recorded with county recorders.
MV Realty launched its Homeowner Benefit Agreement program in 2020 and, at its peak in 2023, said it had enrolled more than 35,000 homeowners across 33 states while paying nearly $40 million to participants.
After facing lawsuits from multiple state attorneys general beginning in late 2022, the company suspended the program in February 2023 and later filed for Chapter 11 bankruptcy protection in September 2023.
This article was written by Jonathan Delozier and generated with the assistance of HousingWire Automation. It was reviewed by a HousingWire editor before publication.
