Background
The practice of submitting Non-Title Recorded Agreements for Personal Services (NTRAPS) for inclusion in property records characterized as liens, covenants, encumbrances, or security interests in exchange for money has recently emerged throughout the country. These agreements obligate the current owner to use the other party’s services in the future, and further attempt to bind successor owners by purporting to create a real property interest. Failure to comply with these agreements may give rise to a lien against the property to secure liquidated damages.
ALTA Position Statement
The American Land Title Association (ALTA) supports efforts to protect consumers by prohibiting the filing of unfair real estate fee agreements in property records, a practice that creates impediments and increases the cost and complexity of selling, refinancing, or transferring real estate. ALTA advocates for state laws and regulations preventing enforcement of Non-Title Recorded Agreements for Personal Services (NTRAPS).
State Legislative Tools
State Regulatory Action
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States that have Enacted NTRAPS Legislation
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NTRAPS Articles
States Crack Down on Predatory Real Estate Deals
In less than two years, more than half of all states around the country have passed AARP-backed laws that protect consumers from unfair real estate agreements, in which brokers trade a small up-front cash payment for the future right to sell a person’s home. AARP worked with the American Land Title Association (ALTA) to create model legislation for states to follow, with a goal of passing a law in all 50 states.
Five More States Ban Unfair Real Estate Fee Agreements
Nearly half of the states in the country now have passed bills protecting homeowners from the predatory practice of filing unfair real estate fee agreements in property records, known as Non-Title Recorded Agreements for Personal Services (NTRAPS). The latest states to pass bills over the past month include Arizona, Nebraska, Kentucky, Oklahoma and West Virginia.
Missouri Sues Real Estate Firm for Filing Unfair Real Estate Fee Agreements
Missouri became the 10th state to sue MV Realty and certain affiliates for filing unfair real estate fee agreements in property records, known as Non-Title Recorded Agreements for Personal Services (NTRAPS).
Indiana Becomes 17th State to Protect Homebuyers from Predatory Contracts
Indiana became the latest state to pass legislation that protects homeowners from the predatory practice of filing unfair real estate fee agreements in property records, known as Non-Title Recorded Agreements for Personal Services (NTRAPS).
A Closer Look: ‘Predatory’ Agreements Targeting Georgia Homeowners
Georgia lawmakers and real estate professionals are cracking down on what they call predatory business practices that are impacting the future of Georgia homeowners. The practice in question is Non-Title Recorded Agreements for Personal Service, NTRAPS, an agreement that targets homeowners over 60.