NC Court Voids Predatory MV Realty Contracts, Frees 2,000 Homeowners

RALEIGH, NC – February 18, 2026 – By George Flores

In a landmark decision celebrated by consumer advocates and real estate industry watchdogs, a North Carolina court has delivered a decisive blow against predatory housing practices, providing relief to over 2,000 homeowners ensnared by deceptive, long-term real estate agreements.

The Superior Court of North Carolina in Wake County granted summary judgment in a lawsuit filed by the North Carolina Department of Justice against MV Realty. The ruling permanently bars the company and its executives from enforcing their controversial "Homeowner Benefit Agreements" (HBAs), which locked consumers into 40-year exclusive listing contracts in exchange for small, upfront cash payments.

The court's order prohibits MV Realty from collecting its substantial early termination fees, recording liens that cloud property titles, or otherwise enforcing the unfair provisions of its agreements within the state. The ruling marks a definitive victory for homeowners, many of whom were unaware of the severe restrictions placed on their property rights.

A Decisive Victory for Property Rights

Attorney General Jeff Jackson’s office secured the victory, which was applauded by a coalition of groups that had long campaigned against MV Realty’s business model. The American Land Title Association (ALTA), its North Carolina chapter (NCLTA), and AARP, which represents older Americans often targeted by such schemes, hailed the decision as a critical step in protecting homeownership.

"This decision is a major win for North Carolina homeowners and a clear message that deceptive agreements undermining property rights will not be tolerated," said Caroline Cone, ALTA's director of state government affairs. "Homeowners should never face hidden or unreasonable restraints on their ability to sell, refinance or pass on their property due to misleading contracts that cloud title and threaten financial security."

The sentiment was echoed by AARP, which has been a key partner in the nationwide fight against these predatory agreements.

"This legal decision builds on our advocacy efforts, in collaboration with ALTA, and delivers a significant victory for North Carolina homeowners," stated Jenn Jones, vice president of financial security and livable communities for AARP. "It sends a clear message: predatory real estate schemes have no place in our housing market."

For many, a home is their most significant financial asset. Michael Olender, AARP North Carolina state director, emphasized the broader principle at stake. "A home often represents a consumer's largest financial investment, and their property rights must be protected," he said. "Good public policy should support the certainty of home ownership by ensuring there are no unreasonable restraints on future ability to sell or refinance property."

The Anatomy of a Predatory Deal

MV Realty’s business model, which it operated in 33 states, centered on its HBA program. The company targeted homeowners with offers of quick cash, typically ranging from just $300 to $5,000. In exchange, homeowners signed a contract granting MV Realty the exclusive right to act as their listing agent if they decided to sell their home at any point in the next 40 years.

The agreements, identified as a type of Non-Title Recorded Agreement for Personal Services (NTRAPS), contained several highly problematic clauses. If a homeowner sold their property within the four-decade term, MV Realty was entitled to a 6% commission. Crucially, the company filed a "Memorandum" of the agreement in public property records, creating a lien or encumbrance that clouded the property's title.

This lien made it nearly impossible for homeowners to sell their property with another agent, refinance their mortgage, or even transfer the home to their heirs without first dealing with MV Realty. To break the contract, homeowners faced an exorbitant early termination fee, typically 3% of the home’s estimated value—a penalty that could amount to tens of thousands of dollars, dwarfing the initial small payment.

Investigations and consumer complaints revealed that many homeowners, particularly older adults and those facing financial distress, were misled about the true nature of the agreement and the existence of the lien.

A Coast-to-Coast Fight Against Deception

The North Carolina ruling is the latest in a string of legal defeats for MV Realty. Attorneys General across the nation have taken action, alleging the company’s practices are deceptive and unconscionable. In Florida, where over 9,300 homeowners were affected, a judge similarly ruled against the company, calling the 40-year contracts unenforceable.

Lawsuits and investigations have also been launched in states like Massachusetts, Pennsylvania, Ohio, and Missouri. In September 2023, facing mounting legal pressure, MV Realty filed for Chapter 11 bankruptcy protection. However, a federal judge later ruled that the bankruptcy could not halt the ongoing state-level lawsuits, allowing attorneys general to continue pursuing justice for consumers.

The collaborative effort in North Carolina was particularly robust. "NCLTA played a pivotal role in uniting key real estate stakeholders across North Carolina...to address this issue collaboratively and effectively," said Nancy Ferguson, co-chair of the NCLTA Legislative Committee. She noted that this coalition, which included the Attorney General's office, the Secretary of State, and the North Carolina Bar Association, helped expedite solutions.

Building a Legislative Shield

Beyond the courtroom, the fight against NTRAPS has been waged in state legislatures. Recognizing the threat these agreements pose, a bipartisan movement has swept the country to outlaw them. North Carolina passed a law banning the practice in 2023, and it is now one of 33 states to have enacted such legislation.

These laws typically make NTRAPS unenforceable, prohibit them from being recorded in property records, and create penalties for companies that violate the ban. They also provide a legal mechanism for homeowners to have existing liens removed, clearing their titles and restoring their full property rights.

This wave of legislation, strongly supported by ALTA and AARP, aims to close the loopholes that companies like MV Realty exploited. The goal is to ensure that homeownership remains a secure path to financial stability, free from hidden traps and deceptive contracts that can turn the American dream into a nightmare.

For homeowners, the key takeaway from this saga is the critical importance of vigilance. Experts advise consumers to be wary of any offer that promises quick cash in exchange for a long-term interest in their home. Before signing any document related to your property, it is essential to read the fine print carefully and, whenever possible, seek independent advice from a trusted attorney or real estate professional.