On April 17, the Nevada attorney general announced an assurance of discontinuance (AOD) with a real estate company and several affiliated entities to resolve allegations that their marketing practices and services offered to Nevada homeowners violated the Nevada Deceptive Trade Practices Act (NDTPA). The state alleged that, between 2020 and July 2023, the company entered into more than 700 “Homeowner Benefit Agreements” with Nevada homeowners. Under these agreements, homeowners allegedly received small upfront “promotional fees” in exchange for granting the company exclusive rights to list their homes for terms of up to 40 years, with recorded commitments that functioned similarly to liens on the properties. According to the state, homeowners who chose not to use the company as their listing agent faced “early termination fees” equal to 3 percent of the home’s sale price. The company denied the allegations, and the AOD does not constitute an admission of liability.

Under the terms of the AOD, the company must, within 30 days and at its own expense, release all Homeowner Benefit Agreements and associated memoranda recorded in Nevada, without requiring any action from affected homeowners. The company also agreed that it retains no claim or interest in any Nevada consumers’ real property, that all such contracts with consumers in the state are “void and unenforceable,” and that it will not seek to recover any promotional payments previously made to homeowners. Additionally, the company agreed to pay the state $200,000 in restitution over 18 months, to be distributed on a pro rata basis among homeowners who paid penalties for listing with other agents. The AOD further requires the company to comply with the NDTPA and NRS 111.2397, which govern future-right-to-list contracts, and prohibits the company from representing that the state endorses its past or future business practices.