ALTA, California Land Title Association and AARP Applaud Attorney General Rob Bonta for Settlement Protecting Homeowners from Unfair MV Realty Contracts
Washington, D.C., – RealEstateRama – The American Land Title Association (ALTA), the California Land Title Association (CLTA) and AARP today commended California Attorney General Rob Bonta for securing a settlement with MV Realty that unwinds unfair long-term agreements that burdened homeowners across the state.
The settlement requires MV Realty to individually terminate all its liens, pay restitution to consumers who paid early termination fees, and void its homeowner agreements. It also imposes significant financial penalties and restrictions on its future business activities in California.
“Attorney General Bonta’s leadership sends a clear message: homeowners should never be trapped in deceptive, long-term agreements that cloud title and put their property rights at risk,” said Caroline Cone, director of state government affairs, ALTA. “A home is often a family’s most important asset, and protecting clear title is fundamental to preserving that security.”
According to the California Department of Justice, MV Realty provided immediate cash payments to financially vulnerable homeowners in exchange for the exclusive right to act as the listing agent if they sold their homes within the next 40 years. The company allegedly misled consumers about the terms of those agreements and deceptively recorded liens that could interfere with a homeowner’s ability to sell, refinance, transfer property or access home equity unless they paid substantial early termination fees.
“This settlement delivers meaningful relief for California homeowners and reinforces a simple principle: no one should have to risk their home, their equity or their financial future because of a predatory real estate scheme,” said Jenn Jones, vice president of financial security and livable communities, government affairs, AARP. “AARP will continue working with state leaders and advocates across the country to stop these harmful practices and ensure older homeowners are protected.”
ALTA, CLTA and AARP have worked alongside policymakers and consumer advocates nationwide to raise awareness about these agreements, often referred to as non-title recorded agreements for personal services, or NTRAPS, and to advance solutions that better protect homeowners from hidden risks.
“These kinds of recorded agreements can create hidden obstacles for homeowners and unnecessary uncertainty in the real estate process,” said Anthony Helton, executive vice president of the California Land Title Association. “We appreciate Attorney General Bonta’s action to protect consumers, clear away these burdens and reinforce the importance of transparency in California property records.”
“For many older Californians, home equity is central to long-term financial stability and the ability to age in place,” said Michael Murray, AARP California state director. “AARP California is proud to stand with state leadership and partners to ensure homeowners are not locked into unfair agreements that can limit their options to sell, refinance, or pass on their homes. AARP California will continue working to ensure strong consumer protections are in place for older adults and their families.”
ALTA, CLTA and AARP will continue working with state leaders, industry partners and consumer advocates to advance protections against predatory real estate contracts and safeguard homeowners’ property rights.
###
About ALTA
The American Land Title Association, founded in 1907, represents an industry comprised of more than 17,000 title insurance companies operating across the nation, with over 90% being small businesses.
About the California Land Title Association
?The California Land Title Association (CLTA) is a non-profit corporation, founded in 1907, representing member title companies throughout the State of California.
Contact: Alisa Mairone
Office: 202-261-0305
Email:
