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Attorney General Tong Seeks to Ban Predatory Real Estate Listing Agreements Following Investigation

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Attorney General Tong Seeks to Ban Predatory Real Estate Listing Agreements Following Investigation


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02/29/2024

Attorney General Tong Seeks to Ban Predatory and Deceptive Real Estate Listing Agreements Following Connecticut Investigation

(Hartford, CT) – Following an investigation that uncovered nearly 400 deceptive real estate agreements in Connecticut through the company MV Realty, Attorney General William Tong today urged legislators to pass legislation banning the multi-year predatory listing deals and nullifying all existing unfair contracts.

MV Realty is a Florida-based company with two licensed realtors in Connecticut. An investigation conducted by the Office of the Attorney General revealed that the company has targeted hundreds of lower-income homeowners in Connecticut, offering residential exclusive listing agreements, which MV calls “Homeowner Benefit Agreements.” Through these agreements, MV provides a small cash payment of a few hundred dollars in exchange for the exclusive right to list their homes for sale for a period of 40 years. If a homeowner chooses to sell their home during that period, MV merely posts the home to the Multiple Listing Service (MLS). They do not serve as a real estate agent. If the homeowner seeks to cancel the exclusive listing agreement or lists their home without using MV, they are subject to a draconian penalty of 3 percent of the market price of their home—often worth several thousand dollars. Moreover, the exclusive listing agreements are entered on the land records as a lien.

“MV Realty preyed on hundreds of Connecticut homeowners with scam deals. Their agreements offered small amounts of up-front cash in exchange for decades-long contracts that few people understood or even had the chance to review. Connecticut law should leave no doubt—these contracts must be banned and voided,” said Attorney General Tong.

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There are approximately 400 MV Homeowner Benefit Agreements recorded on residential land records in Connecticut. The Office of the Attorney General sent surveys to all 400 homeowners and has received responses from more than 100 people to date.

Many homeowners reported that they did not understand the terms of the agreement when it was offered, were not given time to review the paperwork presented and reviewed and signed the exclusive listing agreements on cracked iPads without a notary present. Some were not afforded the opportunity to read the agreement at all and had it read to them, while others were not given copies of the agreements after execution. Many homeowners did not learn of the terms of the exclusive listing agreement until they were preparing to close on the sale of their home or refinancing and the lien was discovered following a title search, forcing them to pay exorbitant amounts to have it removed.

After a handful of states sued MV, the company filed for Chapter 11 bankruptcy and sought to enjoin the states’ actions. MV was unsuccessful in preventing the suits from going forward and states including Connecticut continue to pursue all available remedies for removing the exclusive listing agreements from homeowners’ land records and seek restitution for consumers who were forced to pay MV.

Legislation proposed by the Office of the Attorney General would make clear that such unconscionably long exclusive listing agreements are unenforceable and would provide mechanisms for removing existing agreements from land records. The legislation would limit such agreements to one year and prohibit recording such agreements on land records. The proposal would further nullify all existing unfair excusive listing agreements and give homeowners and the Attorney General authority to seek removal of these agreements from land records.

Click here for the full testimony.

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Assistant Attorneys General Addison Keilty and Rebecca Quinn and Deputy Associate Attorney General Michael Wertheimer, Chief of the Consumer Protection section, assisted the Attorney General in this matter.

Twitter: @AGWilliamTong
Facebook: CT Attorney General
Media Contact:

Elizabeth Benton
elizabeth.benton@ct.gov

Consumer Inquiries:

860-808-5318
attorney.general@ct.gov





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A Pair Of Connecticut Coaches Reach Win Milestones In First Round Of CIAC Division II State Tournament

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A Pair Of Connecticut Coaches Reach Win Milestones In First Round Of CIAC Division II State Tournament


The first round of the Connecticut Interscholastic Athletic Conference (CIAC) boys basketball Division II and IV state tournaments is complete. 

Both divisions began their respective playoffs on Friday with the second round of each division continuing Monday. 

Many stories emerged from Friday night’s slate of games, but two Division II coaches’ career win milestones highlighted the madness. 

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Scot Wenzel And Bryan Moretti Now Have 500 Wins Between Them

Two teams from the Central Connecticut Conference, Newington and Hall had special moments for each of their head coaches. 

Over in Newington, the No. 6 Nor’Easters hosted and defeated Conard, 65-43. The win was also head coach Scot Wenzel’s 300th career win. He has oached the Nor’Easters from 2003–2017 and 2022-present. 

“It means that I’ve coached a lot of really good players,” said Wenzel following the accomplishment. “I’m fortunate to make connections with them on the court and also off the court, and glad I still have connections with a lot of those guys now. They all hold a special place in my heart.”

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Another milestone looms for Newington in its Monday second-round matchup against Hillhouse, as senior Josiah Sims is eight rebounds away from his 1,000th career rebound. The talented senior already reached 1,000 career points earlier this season. 

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In the area and just one town over, Hall head coach Bryan Moretti notched the 200th win of his career in a close 49-46 victory over the visiting Cheney Tech Chargers. Moretti is in his 23rd season as the Titans’ head coach, coaching them since the 2003 season. 

Hall will host No. 9 Fairfield Ludlowe in the second round of the tournament on Monday. 

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Over In Division IV, St. Paul’s Sean McMahon Had A Career Game 

In the Division IV State Tournament, St. Paul senior Sean McMahon scored a career-high 46 points in his team’s 75-50 first-round win over No. 22 Suffield. 

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McMahon scored 10+ points in three out of four quarters and had 23 points in each half. 

The senior who had the hot hand let his shots come naturally and felt confident about them.  

“When the first couple fall, you want to get a couple more up and see if those fall, but I’m not going to go out there and force it,” McMahon told the Bristol Press. “I just let the game come to me.”

St. Paul will face No. 6 Windham Tech on the road Monday in the second round on March 9. 

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2 injured in motorcycle, pedestrian crash in Hartford

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2 injured in motorcycle, pedestrian crash in Hartford


Two people were injured in a crash involving a motorcyclist and a pedestrian, according to officials.

The Hartford Fire Department was called to the crash just before 6:30 p.m. Officials said the crash happened on Albany Avenue between Edgewood Street and Sigourney Street.

When first responders got to the scene, they found two men injured but conscious and breathing. Fire officials said one person was in critical condition with serious injuries and another had an injury to his arm.

Both were taken to a nearby hospital for treatment.

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The Hartford Police Department is investigating the crash.



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Connecticut is Poised to Lose More Residents If It Fails to Fix Affordability

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Connecticut is Poised to Lose More Residents If It Fails to Fix Affordability


Connecticut may become a ghost town if lawmakers fail to address affordability concerns — and the warning signs are becoming harder to ignore. 

new AARP survey of residents aged 45 and older shows deep concern about rising living costs. Respondents cited housing, utilities, and medical care as major financial pressures, fueling broader worries about long-term financial security and the ability to afford retirement in Connecticut. 

The numbers are sobering: 72% of respondents say they are concerned about the cost-of-living, up from 66% in 2023; more than half worry about being able to retire in Connecticut; and 33% report difficulty affording healthcare.  

Those anxieties are translating into real financial strain. Nearly half say they have tapped into savings to cover rising costs. Forty-two percent have stopped saving for retirement altogether. Thirty-six percent struggle with monthly bills. Thirty percent have difficulty affording food. Thirteen percent report skipping medications due to cost. 

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These are not marginal concerns. They represent warning signals from a key demographic in one of the nation’s oldest states. Connecticut’s median age is 41.2, the seventh highest in the country. Meanwhile, the 35-to-49 age group declined by 13.1 percent between 2010 and 2022 — more than any other age group. 

Older residents are increasingly relocating to states such as North Carolina, South Carolina, Florida, and Texas. The reasons are familiar: lower taxes, lower housing costs, and lower energy bills. 

Despite a relatively high average annual income, Connecticut residents face some of the highest property taxes, income taxes, and corporate taxes in the country. At the same time, the state struggles with elevated housing costs and some of the highest utility rates nationwide. For retirees, the financial math often simply doesn’t work. 

In the AARP survey, 92% of respondents agreed that the state government should prioritize utility rate and regulatory changes. That is telling. 

Energy policy illustrates the broader challenge. Over the past several decades, Connecticut has adopted increasingly ambitious renewable energy mandates, including Renewable Portfolio Standards (RPS). This measure severely restricts utilities’ ability to find the cleanest and most efficient means of providing electricity. While environmental goals are important, restricting utilities’ energy sourcing options has contributed to higher costs. 

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The Public Benefits Charge, a state-imposed fee on electric bills that funds various renewable energy programs, has become another driver of high rates. When policy costs are layered onto utility bills, households feel it immediately. 

Connecticut’s long-term emissions goals are ambitious. But energy policy must balance environmental objectives with cost and reliability. In Alternatives to New England’s Affordability Crisis, a coalition study of New England’s energy market found that a more diversified portfolio, including nuclear and natural gas, could significantly lower costs while maintaining reliability and reducing emissions. 

The General Assembly is currently considering a bill to establish a workforce that would advance nuclear energy technologies. That is a conversation worth having. Energy decisions that improve affordability and reliability would directly address the concerns raised in the AARP survey. 

Affordability, however, extends beyond energy. Government spending and taxation play a central role in everyday costs. When taxes and regulatory burdens increase, those costs ripple outward — affecting housing prices, transportation costs, and grocery bills.  

Even proposals framed as targeting large corporations can affect consumers. For example, H.B. 5156, would impose retroactive costs on fossil-fuel producers. Industry groups estimate it could raise gasoline prices by nearly 33 cents per gallon. For families already struggling with food and medical bills, even incremental increases matter. 

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Gov. Ned Lamont has spoken about the need for growth and reform to strengthen Connecticut’s future. Growth, however, requires a competitive cost structure. 

If lawmakers truly believe affordability is the top issue this session, structural reform, not temporary rebates, is required. That means reassessing the tax and regulatory environment that drives costs higher. 

Connecticut’s affordability challenge is not inevitable. It is the cumulative result of policy choices. If those choices are not revisited, the state will continue to lose residents, particularly those in their prime earning years and those approaching retirement, to more affordable alternatives. 

The survey results are not just statistics. They are signals. Lawmakers would be wise to take them seriously. 

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