Golden State Today

California Attorney General Rob Bonta has secured a preliminary injunction against MV Realty, a Florida-based company accused of engaging in predatory practices targeting vulnerable homeowners. The court order mandates the removal of illegal liens placed by MV Realty and provides significant protections to nearly 1,500 affected homeowners across the state.

MV Realty allegedly enticed homeowners with immediate payments through "Homeowner Benefit Agreements," which required them to exclusively use MV Realty for selling their homes over the next 40 years or face a penalty of 3% of the home's value. These agreements also involved placing liens on properties, obstructing homeowners from transferring ownership or refinancing loans unless they paid the penalty.

The injunction was issued by the Los Angeles Superior Court following a lawsuit filed on December 13, 2023, by Attorney General Bonta in collaboration with the Santa Barbara County and Napa County District Attorneys’ Offices.

“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.”

Santa Barbara County District Attorney John T. Savrnoch commented on the importance of this ruling: “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. We strongly agree with the Court that affected homeowners would continue to suffer imminent irreparable harm in the absence of this injunction.”

Napa County District Attorney Allison Haley expressed her support: “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. 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 recorded liens statewide within 30 days of the court’s order or within five days upon notification from a homeowner or their agent.

- Cease recording new liens.

- Refrain from enforcing "Homeowner Benefit Agreements" during ongoing litigation.

A copy of the preliminary injunction can be accessed [here]. The motion for preliminary injunction was partially supported by a declaration from the California Department of Real Estate.