Indiana Joins List of States Filing Complaints Against MV Realty
September 21, 2023
Indiana became the sixth state to file a complaint against MV Realty, alleging the company misled consumers over the terms of the brokerage's “Homeowner Benefit Program.”
The lawsuit filed by Indiana Attorney General Todd Rotika alleges MV Realty purports to offer “loan alternatives” in exchange for consumers agreeing to use the brokerage as their exclusive real estate listing broker. In addition, the state alleges that MV Realty’s Indiana brokerage license has expired and they are unable to engage in the practice of real estate in Indiana.
“Hoosier working men and women go through enough," Rokita said. "Using more than 10 million robocalls to solicit customers and then deceiving them is not a business model that should be tolerated in Indiana.”
According to the complaint, approximately 366 households in at least 65 counties have been impacted by MV Realty's predatory practice of filing unfair real estate fee agreements in property records, known as Non-Title Recorded Agreements for Personal Services (NTRAPS).
Attorneys general in Florida, Massachusetts, New Jersey, North Carolina, Ohio and Pennsylvania also have filed lawsuits against MV Realty.
“We applaud the Indiana Attorney General for addressing this concern for those in the real estate and title industry,” said Kyle Sommers, president of the Indiana Land Title Association.
ALTA has prioritized combating this abusive and anti-consumer activity in the marketplace, which adds costs and complications to the transfer or financing of real estate. ALTA has worked with national stakeholders to design model legislation to make these types of unfair agreements unenforceable, prevent the recording of the agreements in land records and provide consumers with options for seeking damages.
“The property rights of American homebuyers must be protected,” said ALTA Vice President of Government Affairs Elizabeth Blosser. “A home often is a consumer’s largest investment, and the best way to support the certainty of landownership is through public policy. We have to ensure that there are no unreasonable restraints on a homebuyer’s future ability to sell or refinance their property due to unwarranted transactional costs.”
States to pass versions of bills that address NTRAPS include Alabama, Colorado, Florida, Georgia, Idaho, Iowa, Maine, Maryland, North Carolina, North Dakota, Ohio, Tennessee, Utah and Washington.
Contact ALTA at 202-296-3671 or [email protected].