California Attorney General Rob Bonta announced a settlement with Oakland-based HomeOptions and its CEO Kevin Li that resolves charges of a predatory real estate scheme impacting over 500 homeowners.
According to Bonta’s office, HomeOptions lured financially vulnerable homeowners with an immediate payment in exchange for the exclusive right to be the homeowner’s real estate listing agent for the next 20 years. The company then forced unlawful contracts on the 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 was accused of violating California’s Real Estate Law, state and federal telemarketing laws, and federal lending laws. As part of the settlement, HomeOptions agreed to terminate all liens and contracts in California, pay over $400,000 to homeowners who previously paid HomeOptions illegal fees and pay approximately $170,000 in 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 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.”
Bonta noted that California passed legislation to prohibit predatory schemes like the one HomeOptions engaged in. That law went into effect on Jan. 1, 2024, but by then HomeOptions ceased entering into California homeowner agreements.
