SANTA BARBARA COUNTY, Calif. (KEYT) – A Florida-based real estate agency agreed to a settlement over its predatory real estate scheme offering immediate cash payments for decades-long listing rights.
MV Realty, its Chief Executive Officer (CEO) and its Chief Operating Officer (COO) operated a predatory real estate scheme that offered immediate cash payments to homeowners in exchange for the exclusive right to be the owner's listing agent if they sold their homes in the next 40 years explained the Attorney General's Office on Wednesday.
The company misled its customers regarding the terms of those agreements and recorded liens on properties, preventing sellers from transferring ownership, unless they paid MV Realty tens of thousands of dollars in what the company characterized as "early termination fees" noted the state prosecutor's office.
Those liens could also stop homeowners from refinancing or receiving home equity loans added the Attorney General's Office.
According to the settlement, all homeowner contracts with MV Realty are void, MV Realty must individually terminate all liens and the company and its CEO and COO are prohibited from engaging in any business in California that requires a real estate license for five years.
The company must also pay $1,327,069.15 in restitution to consumers and pay $1,172,930.85 in civil penalties per the agreement.
"We will not tolerate predatory conduct that targets vulnerable Californians and puts their homes at risk," stated Attorney General Rob Bonta. "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."
MV Realty began doing business in California in early 2022 and by December of 2023, the company was facing lawsuits filed by the Attorney General and District Attorneys in Santa Barbara and Napa counties.
"The Santa Barbara County District Attorney's Office was proud to team with the Attorney General's Office and the Napa County DA's Office in getting relief for Californians who were victimized by a predatory scheme that took advantage of people who were already struggling financially," Santa Barbara County District Attorney John T. Savrnoch explained. "Californians have a right to expect that when they contract with a real estate company that the company will act in their best interests. This settlement provides an example of how California authorities will respond when a company fails in its duties to its customers by trying to take advantage of them through a predatory and unfair scheme."
MV Realty filed for Chapter 11 bankruptcy in the Southern District of Florida in September of 2023, but federal courts dismissed the filing in May of 2024 noted the Attorney General's Office.
In September of 2024, California's joint prosecution secured a preliminary injunction against MV Realty which was upheld on appeal in December of 2025 and required the company to terminate its liens on properties in the state shared the Attorney General's Office.
A trial concerning MV Realty's business practices in the golden state was scheduled to begin on June 10 of this year and the settlement announced Wednesday resolved the lawsuits filed by the statewide and county-based prosecutor's offices, bringing relief to almost 1,500 homeowners shared the Attorney General's Office.
Within ten days, the company must send a post-judgement notice to all impacted customers explaining the stipulations of the settlement agreement and a representative of the company is required within 15 days to confirm that those notices have been sent to all victims stated the settlement filed on Tuesday, May 26, 2026.
State legislatures across the nation began passing laws that explicitly targeted the business practices used by MV Realty, including lawmakers in Sacramento.
Governor Newsom signed AB 1345 into law in October of 2023 which imposed a two-year cap on residential exclusive listing agreements and prohibited the deals from being filed with a county recorder explained the state prosecutor's office.
The law took effect on January 1, 2024.
"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 explained. "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."
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