Maryland Consumers to Receive $850,000 in Restitution in Title Insurance Settlement

Maryland consumers will receive $850,000 in restitution as part of a settlement reached by the Maryland Attorney General’s Consumer Protection Division with KVS Title, LLC, and several related joint venture companies. The settlement addresses allegations that these companies engaged in unlawful practices by paying real estate agents and brokers for referrals of consumers seeking title insurance. These payments were reportedly made in exchange for business and violated federal and state laws designed to protect consumers in real estate transactions.

The Attorney General’s office alleged that KVS Title, a Maryland-based title company, formed several joint venture companies—Alliance Title Services, LLC; Clear Title Solutions, LLC; Eversure Title, LLC; Realty Settlement Solutions, LLC; Title Pro Group, LLC; and Washington Title Team, LLC—with real estate agents and brokers. Through these joint ventures, the companies are accused of making illegal payments to these agents and brokers. These payments were for referring consumers who then purchased title insurance. Such practices are considered a violation of the federal Real Estate Settlement Procedures Act of 1974, the Maryland Real Estate Settlements Act, and the Maryland Consumer Protection Act.

As a result of the settlement, the joint venture companies will be dissolved. KVS Title is also being prohibited from establishing any new joint venture arrangements with real estate agents or brokers for the purpose of making unlawful payments for title insurance referrals involving Maryland consumers. In addition to the restitution for consumers, KVS Title and the joint venture companies will pay $200,000 to the Consumer Protection Division. This payment is designated for use in consumer protection initiatives, which may include future enforcement actions or educational programs aimed at safeguarding consumers.

Consumers who are eligible for restitution will be notified by mail within ninety days. Kroll Settlement Administration LLC has been appointed as the claims administrator and will automatically issue payments to eligible individuals. Those with questions about the claims process or their eligibility can contact Kroll Settlement Administration LLC by mail at PO Box 225391, New York, NY 10150-5391 or by phone at (833) 462-3479. Consumers seeking general information about the Attorney General’s settlement with KVS Title are encouraged to contact the Consumer Protection Hotline at 410-528-8662.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office

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