Ruling Protects North Carolina Homebuyers from Predatory Contracts

WASHINGTON, Feb. 18, 2026 /PRNewswire/ -- The American Land Title Association (ALTA), the national trade association of the land title insurance industry, the North Carolina Land Title Association (NCLTA) and AARP applaud North Carolina Attorney General Jeff Jackson for securing a court victory against MV Realty and its executives, permanently barring enforcement of the company's predatory "Homeowner Benefit Agreements" and providing relief to thousands of North Carolina homeowners.

The Superior Court of North Carolina, Wake County, granted summary judgment in favor of the North Carolina Department of Justice, prohibiting MV Realty from collecting early termination fees, recording liens or otherwise clouding homeowners' titles or enforcing other unfair provisions tied to decades-long real estate service agreements. The ruling delivers finality to more than 2,000 homeowners impacted by the company's deceptive practices.

"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."

"This legal decision builds on our advocacy efforts, in collaboration with ALTA, and delivers a significant victory for North Carolina homeowners," said Jenn Jones, vice president of financial security and livable communities, government affairs, AARP. "It sends a clear message: predatory real estate schemes have no place in our housing market. We look forward to working with more states to ensure homeowners nationwide receive the same protections."

"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 home ownership by ensuring there are no unreasonable restraints on future ability to sell or refinance property."

"NCLTA played a pivotal role in uniting key real estate stakeholders across North Carolina—including the North Carolina attorney general's office, Secretary of State's Land Records Management Division, North Carolina Bar Association and North Carolina Association of Registers of Deeds—to address this issue collaboratively and effectively," said Nancy Ferguson, co-chair of the NCLTA Legislative Committee. "By providing legislative support, conducting comprehensive research and sharing ALTA resources, NCLTA helped expedite solutions that might otherwise have been delayed within already strained state resources."

MV Realty's predatory practice of filing unfair real estate fee agreements in property records, known as Non-Title Recorded Agreements for Personal Services (NTRAPS), locked homeowners into exclusive listing contracts for up to 40 years in exchange for minimal upfront payments, while obligating them to pay commissions even if the property was sold without the company's involvement. NTRAPS create impediments and increase the cost and complexity of selling, refinancing or transferring real estate while misleading homeowners, lenders and future homebuyers.

North Carolina originally passed legislation banning NTRAPS in 2023. A total of 33 states have passed NTRAPS legislation.

Contact:
Alisa Mairone
202-261-0305
[email protected]

SOURCE American Land Title Association