C
alifornia's top law enforcement officials have brought a predatory real estate scheme to its knees. HomeOptions, a company that preyed on vulnerable homeowners, has agreed to a settlement that will provide restitution and relief to over 500 affected families.

    The joint investigation by the California Attorney General's Office and local district attorneys uncovered a pattern of deceitful practices. HomeOptions lured homeowners with promises of quick cash in exchange for exclusive listing agreements that locked them into 20-year contracts. The company then exploited these agreements, forcing homeowners to pay tens of thousands of dollars in illegal fees to remove liens from their properties.

    "This settlement is a victory for California's homeowners," said Attorney General Rob Bonta. "We're holding HomeOptions accountable for its predatory business practices and ensuring that vulnerable consumers are protected."

    Under the terms of the agreement, HomeOptions must:

    * Terminate all liens on California homes

    * Void all contracts with California homeowners

    * Pay $400,000 in restitution to affected families

    * Pay $170,000 in civil penalties

    The company's CEO, Kevin Li, will also face consequences for his role in the scheme. HomeOptions misrepresented its contractual agreements, included unlawful terms, and violated state and federal laws.

    A new law signed by Governor Newsom in 2023 has further protected California homeowners from similar schemes. Assembly Bill 1345 imposes a two-year limit on exclusive residential listing agreements and prohibits the filing of these agreements with county recorders. HomeOptions stopped entering into such agreements in 2024, but the settlement ensures that affected families will receive justice and relief.