California Attorney General Rob Bonta on Tuesday announced a settlement with Florida-based MV Realty, its chief executive officer, and chief operating officer, resolving a lawsuit that accused the company of running a predatory scheme that targeted financially vulnerable homeowners with decades-long exclusive listing contracts and deceptive property liens.
The agreement, reached ahead of a June 10, 2026 trial date in Los Angeles County Superior Court, requires MV Realty to void all homeowner agreements, individually terminate all liens, provide full restitution to affected consumers, and pay civil penalties.
In total, the settlement secures more than $1.3 million in restitution and nearly $1.2 million in penalties, for a $2.5 million judgment. It also bars MV Realty, its CEO, and its COO from engaging in any California business 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.”
According to the complaint, MV Realty began operating in California in early 2022 and offered quick cash to homeowners in exchange for the exclusive right to list their homes if they sold at any point over the next 40 years. The company allegedly misled consumers about the terms and recorded liens that blocked homeowners—and even their successors—from transferring property without paying “early termination fees” that could reach tens of thousands of dollars. The liens also could impede refinancing and home equity loans.
“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.”
The settlement caps a multiyear enforcement effort by the Attorney General’s Office and the Napa and Santa Barbara County District Attorneys, who filed suit in December 2023. A preliminary injunction issued in September 2024—requiring MV Realty to terminate its liens—was upheld on appeal in December 2025. MV Realty’s September 2023 Chapter 11 bankruptcy filing was dismissed in May 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,” 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.”
Key terms of the settlement:
- All homeowner contracts are void.
- MV Realty must individually terminate all liens.
- MV Realty, its CEO, and its COO are barred from real-estate-licensed business in California for five years.
- MV Realty must pay more than $1.3 million in restitution and nearly $1.2 million in civil penalties, totaling $2.5 million.
California and other states have moved to curb similar practices. In October 2023, Gov. Gavin Newsom signed AB 1345—sponsored by Bonta—which took effect January 1, 2024. The law caps residential exclusive listing agreements at two years and clarifies they cannot be recorded with county recorders.
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