Trenton, NJ – The New Jersey Office of the Attorney General announced Friday a $2.8 million settlement with Florida-based MV Realty, resolving allegations that the company deceived more than 1,200 homeowners through a predatory real estate program that placed liens on their properties.
Attorney General Matthew J. Platkin said the agreement will deliver restitution and relief to affected residents while barring MV Realty from continuing its operations in the state.
The settlement ends the company’s “Homeowner Benefit Agreement” program, which authorities described as a deceptive scheme that exploited financially struggling homeowners.
Key Points
- MV Realty ordered to stop selling and enforcing “Homeowner Benefit Agreements” in New Jersey
- $2.8 million settlement includes $1.3 million in restitution and $1.5 million civil penalty
- Over 1,200 New Jersey homeowners were impacted by the company’s deceptive contracts
Company accused of misleading homeowners
The state’s lawsuit accused MV Realty of violating consumer protection laws by using misleading telemarketing tactics to target vulnerable homeowners during the COVID-19 pandemic. Through the “Homeowner Benefit Program,” the company offered residents between $300 and $5,000 in exchange for a decades-long contract granting MV Realty exclusive rights to act as their real estate agent if they ever sold their homes.
Deceptive terms and hidden liens
Investigators found that MV Realty failed to disclose key details, including that the agreements effectively functioned as high-interest loans lasting 40 years and placed liens on homeowners’ properties. Consumers who tried to cancel or transfer ownership were hit with early termination fees of at least 3 percent of their property’s value—often tens of thousands of dollars.
Settlement terms and restitution
Under the consent judgment filed in Essex County Superior Court, MV Realty and its principals must terminate all liens placed on New Jersey homes, stop enforcing or collecting payments under the agreements, and repay $1.34 million in restitution to affected homeowners. The company was also assessed a $1.5 million civil penalty.
Attorney General condemns predatory practices
“During the COVID-19 pandemic, MV Realty targeted financially struggling homeowners in a deceptive scheme that locked up equity in their most valuable asset—their homes,” Platkin said. “This settlement frees New Jerseyans from the unlawful liens MV Realty placed on their homes and holds the company accountable for its practices.” Acting Division of Consumer Affairs Director Elizabeth M. Harris added that the resolution underscores New Jersey’s commitment to enforcing its consumer protection laws.
Investigation and legal team
The Division of Consumer Affairs’ Office of Consumer Protection led the investigation, with Deputy Attorneys General Christopher Meyer, Claire Corea, Scott Jacobson, and Conor Vance representing the state in the settlement under the supervision of Assistant Section Chief Chanel Van Dyke and Section Chief Jesse J. Sierant.