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 Regulatory Action

States that have Enacted NTRAPS Legislation

Click on any enacted state for links. Click "x" to close.


NTRAPS Articles

Recent 2024 2023 2022

Indiana Becomes 17th State to Protect Homebuyers from Predatory Contracts
March 7, 2024

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
WSAV TV  |  March 4, 2024

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.

Judge Extends Deadline for Consumers to File Proofs of Claim Against MV Realty
February 20, 2024

A judge for the United States Bankruptcy Court for the Southern District of Florida extended the deadline for consumers to file proofs of claim against MV Realty. Title agents and attorneys may have clients who should file a claim.