California Attorney General Rob Bonta says nearly 1,500 homeowners are finally getting out from under what the state called predatory real-estate contracts, after his office and county prosecutors cut a $2.5 million settlement with Florida-based MV Realty.
Announced Wednesday, May 27, 2026, the deal wipes out long-term "Homeowner Benefit" agreements, requires MV Realty to remove recorded liens that had blocked sales or refinancing, and bars the company and two top executives from licensed real-estate activity in California for five years. The agreement, reached days before jury selection was set to begin on June 10 in Los Angeles Superior Court, resolves litigation brought jointly with the Santa Barbara and Napa County district attorneys.
According to a press release by the State of California Department of Justice, MV Realty must terminate all recorded liens one by one, void its homeowner agreements, and repay consumers who were charged early-termination fees. The company began operating in California in early 2022, and the case, filed in December 2023, produced a preliminary injunction in September 2024 that was later upheld on appeal in December 2025.
“We will not tolerate predatory conduct that targets vulnerable Californians and puts their homes at risk,” Bonta said in the same release from the Department of Justice. State prosecutors say the settlement should clear title problems that had blocked homeowners from refinancing or selling.
Details show MV Realty must pay $1,327,069.15 in restitution to consumers and $1,172,930.85 in civil penalties, for a roughly $2.5 million total judgment, as reported by News Channel 3-12. The settlement also prohibits the company, its CEO and its COO from engaging in any California business that requires a real-estate license for five years.
How The Contracts Trapped Homeowners
State court filings describe how MV Realty offered relatively small cash payments to financially stressed homeowners in exchange for 40-year exclusive listing "Homeowner Benefit" agreements. According to the complaint, the company then recorded memoranda that functioned like liens on title and imposed steep "early termination" fees if owners tried to sell or refinance before using MV Realty as their broker.
The complaint filed by the Attorney General and county prosecutors includes examples of the memoranda and is posted on the DOJ website.
Law And Enforcement That Followed
State lawmakers moved to shut down similar schemes. AB 1345, chaptered on October 8, 2023, set a two-year cap on residential exclusive listing agreements and banned recording those agreements with county recorders, according to the bill text on the Legislative Counsel's website. Prosecutors say that change in the law supplied fresh tools to unwind the deals and has nudged other states toward adopting comparable protections.
What Homeowners Should Do
State officials say MV Realty must send post-judgment notices to affected homeowners within 10 days and then confirm within 15 days that those notices went out, according to News Channel 3-12.
If you suspect your title or ability to refinance is still affected, officials advise checking records with your county recorder and contacting your county district attorney's consumer protection unit or the California Department of Real Estate for help. The DRE offers consumer guidance on long-term listing contracts at dre.ca.gov.
Where This Fits Nationally
California is not alone in taking on MV Realty. The company has faced enforcement actions across multiple states, with Colorado's attorney general announcing an agreement last month that voided unfair contracts and returned money to homeowners. Colorado's press release and an industry statement from groups including ALTA outline how states have been working to clear titles and shut down similar long-term agreements.
