E
dina Realty has agreed to pay $3.5 million to settle allegations that it accepted payments from a home warranty company in exchange for promoting its services to clients. The Minnesota Attorney General's Office investigated claims that Edina failed to disclose these payments, leading consumers to believe the warranties were its own products with benefits they didn't have.

    As part of the settlement, Edina will be prohibited from entering similar partnerships and licensing its name or trademark to third parties marketing homebuyers and sellers. The AG will use the settlement money to provide refunds to clients who purchased the warranties.

    Edina disputed the allegations, arguing that advertising agreements with warranty companies are common in the real estate industry and that it provided written disclosures to customers about the warranties and fees involved. However, Attorney General Keith Ellison stated that Edina's actions were a breach of its fiduciary duty to clients.

    The settlement will allow eligible Edina customers who purchased home warranties on or after July 1, 2018, to recover their first-year premium if they had a denied claim or no claims during that time. A claims administrator will contact those who are eligible for refunds.