Real Estate Agent Penalized for Alleged Real Estate Contract Violations

Allison Tussey —  October 15, 2010 — Leave a comment

Daniel Myers, licensed real estate agent, agreed in a settlement with the Attorney General’s Office to change his business practices to comply with the Idaho Consumer Protection Act. Paradigm Solutions, LLC, a now-dissolved Idaho company that Myers owned, is also a party to the settlement.

The Attorney General began investigating Myers‘ business practices after receiving information that Myers allegedly allowed a client to sign an option contract with missing information including: the beginning and ending date of the option; the address and legal description of the property; and the purchase price.

Myers allegedly filled in the missing information after the client signed the documents, which allowed him to determine important terms of the contract without the consumer’s knowledge or consent. The contract required the client to sign in the presence of a notary, but Myers allegedly had his client’s signature notarized outside of his client’s presence.

Myers allegedly entered into similar option agreements with other property owners who also signed contracts that contained blank spaces that Myers later completed.
“It is a violation of the Idaho Consumer Protection Act to obtain the signature of a buyer to a contract when it contains blank spaces to be filled in after the contract is signed,” Wasden said. “Consumers should never sign a document with blank spaces. If anyone asks you to do so, that should raise a red flag and you would be wise to take your business elsewhere.”

Under terms of the settlement, Myers agreed to respond promptly to any new complaints that the Attorney General receives and to modify his business practices to comply with Idaho law. Myers also agreed to reimburse the Attorney General $1,500 for his expenses. If Myers violates the settlement agreement, he will be required to pay a $10,000 civil penalty.

 Attorney General Lawrence Wasden announced the settlement. The settlement is the result of a cooperative effort by the Attorney General’s Office and the Idaho Real Estate Commission.

In addition to the settlement with the Attorney General’s Office, Myers was issued a formal reprimand by the Idaho Real Estate Commission and ordered to pay $6,300 in fines and costs to the Real Estate Commission.

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