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
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States that have Enacted NTRAPS Legislation
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NTRAPS Articles
Real Estate Company Accused of Deceptive Practices
Data pulled from Philadelphia records suggests MV Realty may be focusing on minority neighborhoods. 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). A subgroup of ALTA’s State Legislative/Regulatory Action Committee developed a model bill prohibiting unfair service agreements.
Action News Investigation: Real Estate Company Accused of Deceptive Practices
Data pulled from Philadelphia records suggests the company may be focusing on minority neighborhoods. Rosetta Loper Grant, who is selling her Oxford Circle home, signed onto the agreement offered by MV Realty.
Florida Attorney General Sues Real Estate Brokerage for Scamming Homeowners
The Florida attorney general’s office is suing a Delray Beach-based real estate brokerage for allegedly using deceptive business practices to prey on vulnerable homeowners. The lawsuit filed Tuesday in Hillsborough County Circuit Court claims that the company, MV Realty, uses a “complex and deceptive scheme” to swindle consumers out of their home equity.
Real Estate Racket? Company Offers Homeowners Quick Cash in Exchange for 40-year Lien
It’s a check for few hundred dollars. But it comes with a 40-year real estate contract. That’s longer than most mortgages. And it could end up costing homeowners who sign up thousands of dollars down the road. It’s all part of a deal that some people say they’ve now come to regret. The News Center 7 I-Team’s lead investigative reporter, John Bedell, is digging into how one realty company isn’t just tying up Miami Valley homeowners with 40-year listing agreements, they’re taking them to court to collect big fees.
Realty Company Offers Fast Cash, but Locks You in to 40-year Commitment
A lot of people are looking for extra money. A realty company offers fast cash to homeowners -- thousands of dollars in some cases -- with no interest or fees and you don’t even have to pay it back. MV Realty calls it the “Homeowner Benefit Program.” The company will give you up to $5,000.