ATTORNEY GENERAL BROWN ANNOUNCES $850,000 IN RESTITUTION FOR MARYLAND CONSUMERS IN SETTLEMENT WITH TITLE INSURANCE COMPANIES FOR PAYMENTS FOR REFERRALS

The following information was released by the Maryland Attorney General:

Attorney General Anthony G. Brown announced today that his Consumer Protection Division has entered into a settlement with Maryland-based KVS Title, LLC (KVS Title), a real estate title company, and joint venture companies that KVS formed with real estate agents and brokers in order to sell title insurance to consumers. The joint venture companies were Alliance Title Services, LLC; Clear Title Solutions, LLC; Eversure Title, LLC; Realty Settlement Solutions, LLC; Title Pro Group, LLC; and Washington Title Team, LLC. The Division alleged the joint venture companies unlawfully paid fees to real-estate agents and brokers who were members of the joint ventures, in exchange for the referral of consumers who purchased title insurance, in violation of the federal Real Estate Settlement Procedures Act of 1974, the Maryland Real Estate Settlements Act, and the Maryland Consumer Protection Act.

Under the settlement, the joint venture companies will be dissolved, and KVS Title is prohibited from forming any new joint venture companies with real estate agents or brokers for the purpose of making unlawful payments for referrals of Maryland consumers in connection with title insurance. KVS Title and the joint venture companies must also pay $850,000 in restitution to Maryland consumers and make a $200,000 payment to the Division that may be used for consumer protection purposes, including future enforcement or consumer education. Within ninety days, consumers who are entitled to relief will be contacted by letter by the claims administrator, Kroll Settlement Administration LLC, and restitution to these consumers will be automatically issued. Questions for the administrator may be directed to PO Box 225391, New York, NY 10150-5391 or (833) 462-3479.