ALTA, AARP Applaud Missouri AG on Lawsuit to Protect Homeowners

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Apr 03, 2024, 08:00 ET

WASHINGTON, April 3, 2024 /PRNewswire/ -- The American Land Title Association (ALTA), AARP and the Missouri Land Title Association (MLTA) applaud Missouri Attorney General Andrew Bailey for his efforts to combat unfair and deceptive practices in the Missouri 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 Bailey to protect consumers and we urge the Missouri legislature to pass legislation to curb such predatory business, so that the judiciary and the legislature are aligned in protecting homeowners and their rights," said AARP Government Affairs Director Samar Jha.

Attorney General Bailey is the 10^th attorney general to sue MV Realty over its "Homeowner Benefit Program." Nine other attorneys general have filed lawsuits, including those in Georgia, New Jersey, Florida, Massachusetts, Ohio, Pennsylvania, North Carolina, California and Indiana.

"We thank Attorney General Bailey for filing suit against MV Realty and its affiliates," said Cheryl Cowherd, President of the Missouri Land Title Association. "A home is often a consumer's most important asset, and we believe protecting them from these practices is of the utmost importance. This action puts companies using predatory business models on notice that the State of Missouri is serious about protecting its consumers."

"AARP is helping older adults steer clear from fraud, scams and other unscrupulous practices that threaten their economic security and savings," said Craig Eichelman, State Director of AARP Missouri. "Stopping unfair service agreements is an important way to protect what is often someone's most valuable asset, their home. We thank Attorney General Bailey for looking into this predatory business model that targets older adults and financially insecure homeowners."

Since 2023, 22 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, Nevada, North Carolina, North Dakota, Ohio, Oregon, Tennessee, 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]

SOURCE American Land Title Association