According to Labrador, the settlement voids the contracts “as if they never existed.” Over the course of their investigation, Labrador’s office claims they found that MV Realty’s contracts contained terms the company “deliberately hid because no reasonable family would agree to them.”
As part of the settlement, MV Realty is obligated to contact every Idaho county recorder to remove the contracts from homeowners’ property records. Additionally, MV Realty and its three primary executives Amanda Zachman, Anthony Mitchell and David Manchester are all banned from working in residential real estate in Idaho for five years.
“Idaho families were tricked into signing contracts that locked them into 40-year obligations with massive penalties if they tried to use a different [real estate agent],” Labrador said in a statement. “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.”
Labrador was one of 13 attorneys general to sue MV Realty over its program. In addition to these lawsuits, since 2023, 33 states have passed legislation preventing the use of these types of programs. MV Realty filed for Chapter 11 bankruptcy protection in September 2023 but has since withdrawn the request.
