Major Consumer Settlement Voids Restrictive 40-Year Contracts
In a significant action benefiting homeowners across the Portland region and Oregon, the state’s Department of Justice (DOJ) has secured a settlement with Florida-based MV Realty, resolving allegations of deceptive practices involving “Homeowner Benefit Agreements” (HBAs). These controversial agreements provided property owners with a small, upfront cash payment—often only a few hundred dollars—in exchange for exclusive rights to list the home with MV Realty for a period of 40 years.
The key to the scheme’s success was its aggressive targeting. The Oregon DOJ specifically noted that the program utilized “deceptive and coercive marketing to trap Oregon homeowners”. This practice was designed to entice homeowners who needed immediate, small cash payments, trapping them in contracts that Attorney General Dan Rayfield described as “outrageous”—an attempt to hold property equity hostage for decades. Lawsuits filed by other Attorneys General across the country further confirm this was a pattern of “predatory financial product” marketing aimed at “cash-strapped homeowners” and the elderly, often for a payout that amounted to less than 0.3% of the home’s value.
The central concern for the real estate industry was the recording of memoranda of these agreements on property titles. These filings acted as encumbrances, creating a significant cloud on title that could complicate or prevent critical transactions like sales, refinances, or equity access without the homeowner paying substantial termination penalties to MV Realty. In Oregon, 669 such active agreements were in place, potentially exposing affected homeowners to over $7.9 million in combined termination fees.
Under the terms of the settlement, MV Realty was required to fully release all 669 active agreements and associated title encumbrances no later than December 5, 2025. This critical deadline ensures that affected homeowners owe no further fees to the company and regain unrestricted control over listing and property transactions.
Appraisal Implications of Title Encumbrances
Clear and marketable title is fundamental to accurate residential appraisal practice and is a prerequisite for nearly all mortgage lending in the Portland metro area. The presence of an active, restrictive lien, particularly one rooted in a predatory agreement, directly impairs the marketability and financeability of a property, thus potentially diminishing its market value.
Appraisers are tasked with evaluating the specific bundle of rights being conveyed, most commonly the Fee Simple Estate. Encumbrances like the MV Realty memoranda, if flagged, required appraisers to note exceptions and contingencies in their reports, affecting assumptions about marketability and often leading to lender rejection of the collateral. The settlement resolves this issue for properties across our service area, including Clackamas, Multnomah, and Washington counties.
Verification of Unencumbered Status
With the mandated releases complete or imminent as of this posting date, these properties across Oregon now benefit from restored clear title. However, the onus is on transactional parties to confirm the resolution.
Lenders, REALTORS, estate planners, and attorneys handling sales, refinances, or equity transfers involving previously affected properties must perform due diligence to verify the official recording of the release documents through county records. Direct confirmation of the removal of the encumbrance from the county recorder’s official files is the only definitive proof that the title is clear.
Homeowners who previously signed these agreements are strongly advised to retain documentation of the settlement and monitor their title updates closely.
For a broader perspective on how sales volume and pricing are performing in the absence of artificial marketability barriers, refer to our most recent data-driven report, the Portland Region Q3 2025 Market Update.
Sources & Further Reading
- Oregon DOJ press release on the settlement: Oregon Department of Justice Secures Settlement Releasing Hundreds of Homeowners from Deceptive 40-Year Contracts with MV Realty
- Hoodline article detailing the settlement: Oregon DOJ Secures Settlement with MV Realty, Frees Homeowners from 40-Year Restrictive Contracts
- OregonLive article on the details of the contracts: This real estate company trapped nearly 700 Oregon families in 40-year contracts that even affected their children, officials say
- Georgia Attorney General filing on predatory scheme: Carr: Georgia Files Suit Against MV Realty Over Allegations of Unfair and Deceptive Practices
- The Portland Region Q3 2025 Market Update: Portland Appraisal Blog
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