NJ AG Shuts the Door on Predatory Homeowner Contracts

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  • New Jersey AG Matthew J. Platkin and the Division of Consumer Affairs announced a $2.8 million settlement with MV Realty PBC, LLC and affiliates (collectively, “MV Realty”), resolving a 2023 lawsuit alleging that the company violated New Jersey’s consumer protection laws through its “Homeowner Benefit Agreements” (HBAs).
  • The AG’s office described the HBAs as unconscionable agreements that placed liens on the homes of financially vulnerable consumers and imposed predatory terms, including steep early termination fees, in exchange for nominal one-time cash payments.
  • Under the final consent judgement, MV Realty agreed to stop entering into HBAs with New Jersey consumers, cease enforcing existing HBAs in the state, and terminate any liens on homeowners’ properties. The company will pay $1.5 million in civil penalties and $1,344,122 million in restitution to homeowners who paid early termination fees.
  • We have previously reported on lawsuits against MV Realty in Florida and Minnesota that challenged HBAs in those states.
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