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

 Florida Court Rules MV Realty’s Contract ‘Unconscionable’ Under State Law
October 1, 2024

In its holding, Florida’s Circuit Court of the 13th Judicial Circuit in Hillsborough County found that MV Realty’s Homeowner Benefit Agreements contract is unconscionable under Florida law and violated the state’s Deceptive and Unfair Trade Practices Act and Telemarketing Sales Rule.

Minnesota Joins List of States Suing MV Realty
October 1, 2024

MV Realty faces similar lawsuits in California, Florida, Georgia, Illinois, Indiana, Massachusetts, New Jersey, North Carolina, Ohio and Pennsylvania.

 Calif. Court Orders Preliminary Injunction Against MV Realty
September 19, 2024

The Superior Court of California for the County of Los Angeles on Sept. 13 issued a preliminary injunction against MV Realty, a Florida-based company that engaged in a predatory scheme to lure vulnerable homeowners looking for financial help with an immediate payment and then locked them into so-called Homeowner Benefit Agreements.

Hawaii Joins States Protecting Homebuyers from Predatory Contracts  
July 18, 2024

Hawaii joined 30 other states that have passed ALTA-supported legislation that includes provisions 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).

Measure Protecting Homeowners From Predatory Contracts Close to Becoming Law
The Center Square  |  June 21, 2024

The practice of offering an upfront cash payment in exchange for a decades-long contract for exclusive rights to sell the property may soon be illegal in Illinois. “What we saw happening in the marketplace was real estate brokerage firms were going to homeowners and paying them as little as $300 dollars to sign a listing agreement that could last for as long as 40 years,” said Elizabeth Blosser, Vice President of Government Affairs with the American Land Title Association.