New York Prohibits Unfair Real Estate Fee Agreements
June 26, 2025
New York joined 32 other states passing bills that protect 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).
S6361, which awaits the governor’s signature, makes NTRAPS unenforceable by law, prohibits the recording of NTRAPS in property records and creates penalties if they are recorded in property records.
The New York State Land Title Association worked closely with AARP to get the bill passed. The act goes into effect 19 days after it becomes a law.
“The property rights of American homebuyers must be protected,” said Elizabeth Blosser, ALTA’s chief strategy, communications and innovation officer. “A home often is a consumer’s largest investment, and the best way to support the certainty of land ownership is through public policy. We have to ensure that there are no unreasonable restraints on a homebuyer’s future ability to sell or refinance their property due to unwarranted transactional costs.”
NTRAPS have been recorded in property records since 2018. The practice preys upon homeowners, offering small cash gifts in exchange for decades-long contracts for the exclusive rights to sell the property. Submitting NTRAPS for inclusion in property records characterized as liens, covenants, encumbrances or security interests in exchange for money creates impediments and increases the cost and complexity of transferring or financing real estate in the future.
Other states to pass versions of bills that address NTRAPS include Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Louisiana, Kentucky, Maryland, Maine, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Utah, Virginia, Washington and West Virginia.
Contact ALTA at 202-296-3671 or [email protected].