ALTA, AARP, SLTA Applaud Georgia AG on Consumer Exploitation Lawsuit

News provided by

Feb 26, 2024, 07:00 ET

WASHINGTON, Feb. 26, 2024 /PRNewswire/ -- The American Land Title Association (ALTA), AARP and the Southeast Land Title Association (SLTA) applaud Georgia Attorney General Christopher Carr for his efforts to combat unfair and deceptive practices in the Georgia 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."

"Attorney General Carr's actions and the steps taken by the Georgia legislature to pass legislation to prohibit such predatory business practices are a great example of how the judiciary and the legislature can come together to protect homeowners and their rights," said AARP Government Affairs Director Samar Jha.

Attorney General Carr is the ninth attorney general to sue MV Realty over its "Homeowner Benefit Program." Eight other attorneys general filed lawsuits, including 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.

"Congratulations to Attorney General Carr for filing suit against MV Realty, its affiliates and others pursuant to the Georgia Fair Business Practices Act," said Deborah Bailey Esq., ALTA Board Governor and co-chair of SLTA's Georgia Governmental Affairs Committee. "Consumers deserve protection against predatory business models. Georgia is demonstrating to the country that it is possible to be a top state for conducting business while simultaneously protecting consumers. This filing underscores the importance of companies that are marketing innovative financial products to do so in a responsible manner. Companies doing business in Georgia, like any other state, have a responsibility to protect consumers and to make sure their products are safe, legal and ethical."

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

In 2023, 16 states passed legislation protecting homeowners from the predatory practice of filing NTRAPS in property records.

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.

CONTACT: Megan Hernandez, 14405541937, [email protected]

SOURCE American Land Title Association