For Immediate Release
ALTA, AARP Applaud Illinois AG on Consumer Exploitation Lawsuit
Washington, DC, May 8, 2024 — The American Land Title Association (ALTA), AARP and the Illinois Land Title Association (ILTA) applaud Illinois Attorney General Kwame Raoul for his efforts to combat unfair and deceptive practices in the Illinois real estate market by filing a complaint against Florida-based real estate brokerage MV Realty and certain affiliates for filing unfair real estate fee agreements in property records, known as Non-Title Recorded Agreements for Personal Services (NTRAPS). This practice preys upon homeowners, offering small cash gifts in exchange for decades-long contracts for the exclusive rights to sell the property.
“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 we have to ensure there are no unreasonable restraints on a homebuyer’s future ability to sell or refinance their property due to unwarranted transactional costs.”
“This is a great step taken by Attorney General Raoul to protect consumers, and we urge the Illinois legislature to pass SB 3420 to curb such predatory business, so the judiciary and legislature are aligned in protecting homeowners and their rights,” said AARP Government Affairs Director Samar Jha.
Attorney General Raoul is the 11th attorney general to sue MV Realty over its “Homeowner Benefit Program.” Ten other attorneys general filed lawsuits, including Missouri Attorney General Andrew Bailey, Georgia Attorney General Christopher Carr, New Jersey Attorney General Matthew J. Platkin, Florida Attorney General Ashley Moody, Massachusetts Attorney General Maura Healey, Ohio Attorney General Dave Yost, Pennsylvania Attorney General Josh Shapiro, North Carolina Attorney General Josh Stein, California Attorney General Rob Bonta and Indiana Attorney General Todd Rotika.
"The ILTA commends Attorney General Raoul for filing an action to void existing predatory agreements, known as NTRAPS, that have been recorded in Illinois," said ILTA President Leigh Curry. "ILTA is dedicated to protecting homeowners’ property rights and has proposed a bill that would prohibit NTRAPS from being recorded against real property in the future. Our bill, Senate Bill 3420, along with the lawsuit filed by Attorney General Raoul will protect Illinois homeowners from future predatory agreements and eliminate those agreements already existing. ILTA thanks Attorney General Raoul, and bill sponsors, former Sen. Ann Gillespie and Rep. Terra Costa Howard, for joining in the fight to protect Illinois homeowners."
“AARP is helping protect older adults across Illinois from fraud, scams and other unscrupulous practices that threaten their economic security and savings,” said AARP Illinois State Director Philippe Largent. “Stopping unfair service agreements is an important way to protect what is often someone’s most valuable asset, their home. We thank Attorney General Raoul for looking to put a stop to this predatory business model that targets older adults and financially insecure homeowners.”
Since 2023, 24 states passed legislation protecting homeowners from the predatory practice of filing unfair real estate fee agreements in property records, including Alabama, Arizona, California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kentucky, Maryland, Maine, Nebraska, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Tennessee, Texas, Virginia, Washington and West Virginia.
###
About ALTA
The American Land Title Association, founded in 1907, is a national trade association representing more than 6,000 title insurance companies, title and settlement agents, independent abstracters, title searchers and real estate attorneys. ALTA members conduct title searches, examinations, closings and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles.
Contact: Megan Hernandez
Office: 202-261-0315
Email: [email protected]