Mv Realty Listing Agreement Enforcement Barred In North Carolina

A North Carolina court has permanently barred MV Realty from enforcing decades-long real estate agreements that state officials said deceived thousands of homeowners — granting summary judgment to the North Carolina Department of Justice and delivering relief to more than 2,000 residents.

The Superior Court of North Carolina in Wake County ruled in favor of the state, prohibiting MV Realty from collecting early termination fees, recording liens or otherwise clouding homeowners’ titles or enforcing other provisions tied to its “Homeowner Benefit Agreements.”

The American Land Title Association (ALTA) joined the North Carolina Land Title Association (NCLTA) and AARP in praising the ruling.

“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 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.”

Jenn Jones, vice president of financial security and livable communities, government affairs at AARP, agreed that the ruling represents a significant victory for North Carolina homeowners.

“It sends a clear message: predatory real estate schemes have no place in our housing market,” she said. “We look forward to working with more states to ensure homeowners nationwide receive the same protections.”

MV Realty’s agreements — known as non-title recorded agreements for personal services (NTRAPS) — were filed in property records and locked homeowners into exclusive listing contracts for up to 40 years in exchange for modest upfront payments.

Contracts required homeowners to pay commissions even if their property was sold without the company’s involvement.

Critics say the agreements created impediments and increased the cost and complexity of selling, refinancing or transferring real estate while misleading homeowners, lenders and future buyers.

North Carolina lawmakers previously banned NTRAPS in 2023. Since then, 33 states have enacted similar legislation.

“A home often represents a consumer’s largest financial investment, and their property rights must be protected,” said Michael Olender, AARP North Carolina state director. “Good public policy should support the certainty of homeownership by ensuring there are no unreasonable restraints on future ability to sell or refinance property.”

Nancy Ferguson, co-chair of the NCLTA Legislative Committee, said the state association helped coordinate a response among real estate stakeholders across North Carolina — including the Attorney General’s office, the Secretary of State’s Land Records Management Division, the North Carolina Bar Association and the North Carolina Association of Registers of Deeds.

“By providing legislative support, conducting comprehensive research on filings across all 100 counties and sharing ALTA resources, NCLTA helped expedite solutions that might otherwise have been delayed within already strained state resources,” she said.

MV Realty has been banned from Florida, Minnesota, Idaho, North Carolina and California. The firm filed for bankruptcy in 2023.