Golden State Today

California authorities have reached a settlement with HomeOptions over alleged predatory real estate practices. Announced by Attorney General Rob Bonta, the resolution involves the Oakland-based company terminating liens and contracts with more than 500 homeowners across California, alongside payment of $570,000 in penalties and restitution.

The move follows an investigation by Bonta’s office, in collaboration with Napa and Santa Barbara County District Attorneys, Allison Haley and John T. Savrnoch. They found that HomeOptions engaged vulnerable homeowners with upfront payments in exchange for long-term real estate listing agreements, unapproved contracts, and recorded liens. The company forced homeowners to pay large amounts to eliminate these liens to obtain home loans or transfer titles.

"The business practices of HomeOptions can be summed up in one word: predatory," Attorney General Bonta stated. "This settlement holds the company accountable and provides immediate relief to California homeowners."

District Attorney Haley emphasized, "Napa will not stand mute to the predation of those who victimize our citizenry." Similarly, District Attorney Savrnoch declared, "Homeowners are entitled to be safe in their homes and not fall prey to scams."

As part of the settlement, HomeOptions will terminate all liens clouding homeowners' titles, potentially saving them tens of thousands of dollars. All contracts with California homeowners will be voided, releasing them from any obligations. The settlement includes $400,000 in restitution to affected homeowners and $170,000 in civil penalties.

The resolution aligns with new legislation signed by Governor Gavin Newsom on October 8, 2023. The law, sponsored by Attorney General Bonta, prohibits the types of practices HomeOptions engaged in, imposing limits on listing agreements and prohibiting their filing with county recorders.