Attorney General Labrador Wins Relief for Idaho Homeowners Trapped in Predatory Contracts

Home Newsroom Attorney General Labrador Wins Relief for Idaho Homeowners Trapped in Predatory Contracts

BOISE, ID - Attorney General Raúl Labrador secured a settlement that voids predatory contracts MV Realty tricked Idaho homeowners into signing. The company lured families with small cash payments, then trapped them in 40-year agreements with hidden penalties-even binding their children to the contract.

MV Realty offered homeowners a few hundred dollars in exchange for using them as their realtor if they ever sold their home. But when homeowners agreed, a notary arrived at their door with a multi-page contract in confusing legal language. The notary knew nothing about the terms and pressured homeowners to sign immediately without time to review.

The contracts contained terms MV Realty deliberately hid because no reasonable family would agree to them. Homeowners were locked into 40-year obligations that transferred to their children when they died. Breaking the contract cost 3% of the home's value. If MV Realty failed to sell the home in six months, homeowners had only 60 days to sell with another realtor at the same price or higher-or face the penalty.

MV Realty then recorded these contracts on homeowners' property titles at county recorders' offices, blocking them from refinancing or selling with another realtor without paying the penalty first.

"Idaho families were tricked into signing contracts that locked them into 40-year obligations with massive penalties if they tried to use a different realtor," said Attorney General Labrador. "Our lawsuit forced them to void every one of these predatory agreements and leave Idaho for five years, ensuring our families can sell their homes freely without fear of scams designed to exploit them."

The settlement declares all Idaho "Homeowner Benefit Agreements" null and void as if they never existed. MV Realty must contact every Idaho county recorder to remove the contracts from homeowners' property records. The company and its main officers-Anthony Mitchell, David Manchester, and Amanda Zachman-are banned from residential real estate work in Idaho for five years.

Idaho homeowners affected by this scam no longer face penalties or obligations. Their property titles are being cleared, and they are free to sell or refinance their homes without restriction.

Idahoans who have consumer concerns or need to report scams can visit ReportScamsIdaho.com and file a complaint on the Idaho Attorney General's website.