September 17, 2024 - OAKLAND — California Attorney General Rob Bonta today announced securing a preliminary injunction against MV Realty, a Florida-based company that engaged in a predatory scheme to lure vulnerable homeowners looking for financial help with an immediate payment and then locked them into so-called “Homeowner Benefit Agreements” — agreements that required homeowners to exclusively use MV Realty to sell their homes for the next 40 years or pay a penalty of 3% of the home’s value. MV Realty also placed illegal liens on homes and charged homeowners the 3% penalty to remove the lien. In addition to blocking home transfers, the lien could impede, delay, or prevent a homeowner from obtaining or refinancing home loans. The preliminary injunction, which offers important protections to affected consumers, was issued by the Los Angeles Superior Court and was sought by Attorney General Bonta and the Santa Barbara County and Napa County District Attorneys’ Offices as part of the lawsuit they filed against MV Realty on December 13, 2023. 

“To the nearly 1,500 California homeowners who were tricked into entering into the unlawful listing agreements with MV Realty, today is a good day,” said Attorney General Rob Bonta. “The court found that we are likely to prevail on our claim that those homeowners were intentionally misled by MV Realty. The court also found that MV Realty’s conduct imposed ‘imminent irreparable harm’ to homeowners. As a result, the company is being ordered to stop violating state law, once again allowing homeowners the freedom to do with their property what they wish. While our legal battle is not yet over, we will continue fighting to hold MV Realty accountable.” 

“This court order provides necessary protections to homeowners in Santa Barbara County, and the entire state, so they will not be further victimized during the course of this litigation,” said Santa Barbara County District Attorney John T. Savrnoch. “We strongly agree with the Court that affected homeowners would continue to suffer imminent irreparable harm in the absence of this injunction.” 

“I stand with Attorney General Bonta and my fellow prosecutors in condemning MV Realty’s deceptive business practices and will fight aggressively to hold them accountable and safeguard the rights of homeowners across California,” said Napa County District Attorney Allison Haley. “No family should be trapped in unlawful contracts or face illegal liens on their homes. This preliminary injunction is a critical step in ensuring justice for those impacted by this harmful business model.”  

The preliminary injunction requires MV Realty to: 

• Remove the liens it has recorded statewide within 30 days of the court’s order, or within 5 days of notification from a California homeowner, or his or her agent, who needs the termination to be able to move forward with a transaction related to the homeowner’s property. 
• Stop recording new liens. 
• Not enforce, during the pendency of the litigation, the “Homeowner Benefit Agreements” it signed with California homeowners.

A copy of the preliminary injunction can be found here. The motion for preliminary injunction was supported in part by a declaration from the California Department of Real Estate.
Source: CA. DOJ