Maryland Title JVs to Dissolve in Settlement with State's Attorney General

Maryland Attorney General Anthony Brown announced in January that joint venture (JV) companies between a title insurance company and real estate entities will dissolve and compensate impacted consumers as part of an $850,000 settlement relating to allegations of illegal referral practices.

The settlement, which detailed the terms between Brown’s office, real estate company KVS Title, and a number of JVs, alleged that the entities engaged in unethical and illegal business practices, including paying fees to agents and brokers in return for customer referrals.

As part of the settlement, KVS and the JVs agreed to pay $850,000 in restitution to affected consumers, in addition to a $200,000 payment to the Maryland Attorney General’s Office. 
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KVS and the JVs will also be required to dissolve all JV companies within 30 days, with each being banned from “conducting any transaction in Maryland as of the effective date.” The entities will also be prohibited from creating, forming or maintaining “any new JV companies with real estate agents or brokers for the purpose of making unlawful payments for referrals of Maryland consumers in connection with the offer and sale of title insurance.”