Attorney General Bonta Announces Settlement with California-Based HomeOptions over Predatory Real Estate Scheme

HomeOptions must terminate all liens and contracts in California and pay over $570,000 in penalties and restitution to homeowners 

OAKLAND — California Attorney General Rob Bonta today announced reaching a settlement with HomeOptions, a realty company based in Oakland that engaged in a predatory real estate scheme impacting over 500 California homeowners, and its Chief Executive Officer. In partnership with Napa County District Attorney Allison Haley and Santa Barbara County District Attorney John T. Savrnoch, Attorney General Bonta launched an investigation into HomeOptions that found the company lured financially vulnerable homeowners with an immediate payment of a couple hundred to a couple thousand dollars in exchange for the exclusive right to be the homeowner’s real estate listing agent for the next 20 years, entered into unlawful contracts with those homeowners, deceptively recorded liens against the homeowners’ homes, and forced homeowners to pay tens of thousands of dollars in illegal fees to remove those liens so that they could transfer title or obtain home loans. HomeOptions misrepresented the nature of its agreements, included unlawful breach and early termination penalty terms in its contracts, and violated California’s Real Estate Law, state and federal telemarketing laws, and federal lending laws. As part of the settlement, HomeOptions has agreed to terminate all liens and contracts in California, pay full restitution to victims, and pay civil penalties. 

“HomeOptions’ business practices can be summed up in one word: predatory. This settlement holds the company accountable and provides immediate relief to California homeowners,” said Attorney General Bonta. “Homeowners will regain full control over their homes, without having to worry about a HomeOptions lien ever again. And homeowners who have already paid early termination penalties to HomeOptions will get all of their money returned. Let there be no doubt that, in California, we will enforce the law against unscrupulous businesses that exploit vulnerable consumers.”

“Napa will not stand mute to the predation of those who victimize our citizenry,” said Napa County District Attorney Allison Haley. “I am gratified that by our action, all the exclusive listing agreements with California consumers are rendered void and unenforceable.”

“Homeowners are entitled to be safe in their homes and not fall prey to scams intended to extract their home equity,” said Santa Barbara County District Attorney John Savrnoch. “This settlement rightly provides full restitution to all victims and prevents HomeOptions and its CEO from engaging in these practices again.” 

The settlement announced today requires HomeOptions to: 

• Terminate all liens that it recorded on California homeowners’ homes. Because these liens clouded title, homeowners often could not transfer title or obtain home loans without paying HomeOptions to terminate those liens. By requiring termination of all liens, the settlement will likely save impacted homeowners tens of thousands of dollars each.
• Void all contracts that it entered into with California homeowners. These contracts required homeowners to pay steep fees if they did not use HomeOptions real estate agents. By voiding these contracts and requiring HomeOptions to stop any enforcement or collection efforts on these contracts, the settlement allows homeowners to list their homes with any real estate agent of their choosing and releases them from all obligations and payments to HomeOptions.
• Pay full restitution, totaling over $400,000, to homeowners who previously paid HomeOptions illegal fees, including to remove their liens.
• Pay approximately $170,000 in civil penalties.

California has passed legislation to prohibit predatory schemes like the one HomeOptions engaged in. On October 8, 2023, Governor Gavin Newsom signed into law AB 1345, which Attorney General Bonta sponsored and went into effect on January 1, 2024. AB 1345 imposes a two-year limit on residential exclusive listing agreements and prohibits the filing of those agreements with a county recorder. HomeOptions ceased entering into California homeowner agreements in 2024. 

A copy of the complaint can be found here. A copy of the stipulated judgment can be found here.