Settlement reached ahead of scheduled trial 

OAKLAND — California Attorney General Rob Bonta today secured a settlement holding Florida-based MV Realty, its Chief Executive Officer (CEO), and its Chief Operating Officer (COO) accountable for operating a predatory scheme that provided immediate cash payments to financially vulnerable homeowners in exchange for the exclusive right to be their listing agent if they ever sold their homes in the next 40 years. The company misled consumers about the terms of these homeowner agreements and deceptively recorded liens on their homes, which prevented homeowners and their successors from transferring their home unless they paid MV Realty tens of thousands of dollars in so-called “early termination fees.” The liens could also impede homeowners from refinancing their homes or getting home equity loans. The settlement requires MV Realty to individually terminate all its liens, pay back homeowners 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.

“We will not tolerate predatory conduct that targets vulnerable Californians and puts their homes at risk,” said 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 actively operating in California in early 2022. Today’s settlement resolves the lawsuit filed against MV Realty by Attorney General Bonta and the Santa Barbara County and Napa County District Attorneys’ Offices in December 2023. In September 2024, they secured a preliminary injunction against MV Realty, which was upheld on appeal in December 2025, requiring the company to terminate its liens. Trial was scheduled to begin on June 10, 2026 in the Superior Court of Los Angeles County.

“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,” said Napa County District Attorney Allison Haley. “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.”

“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,” said Santa Barbara County District Attorney John T. Savrnoch. “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.”

As a result of the settlement:

• All homeowner contracts are void.
• MV Realty must individually terminate all liens.
• MV Realty, its CEO, and its COO are prohibited from engaging in any business in California that requires a real estate license for 5 years.
• MV Realty must pay full restitution to consumers, totaling over $1.3 million as well as nearly $1.2 million in civil penalties, for a total monetary judgment of $2.5 million.

A number of states, including California, have passed legislation prohibiting fraudulent schemes like the one MV Realty engaged in. In October 2023, Governor Gavin Newsom signed into law AB 1345, which went into effect on January 1, 2024. Sponsored by Attorney General Bonta, AB 1345 imposes a two-year limit on residential exclusive listing agreements and clarifies that these agreements cannot be filed with a county recorder.

In September 2023, MV Realty filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Florida. The court dismissed the bankruptcy in May 2024.