Nevada Passes Law Protecting Homebuyers from Predatory Contracts   

August 1, 2023

Nevada Gov. Joe Lombardo recently signed 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).

SB 355 makes NTRAPS unenforceable. Other states to pass versions of bills that address NTRAPS include Alabama, Colorado, Florida, Georgia, Idaho, Iowa, Maine, Maryland, North Dakota, Ohio, Tennessee, Utah and Washington.

ALTA, the AARP and the Nevada Land Title Association (NLTA) applauded Nevada for passing the legislation.

“The property rights of American homebuyers must be protected,” said ALTA Vice President of Government Affairs Elizabeth Blosser. “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. 

“We are pleased that AARP’s advocacy efforts, undertaken in collaboration with ALTA, have produced a win for Nevada homeowners,” said AARP Government Affairs Director Samar Jha. “We look forward to working on similar legislative solutions in other states to help protect homeowners against predatory housing practices.”  

SB 355 follows the objective of similar bills introduced across the country to provide a remedy for existing NTRAPS while also discouraging these types of unfair practices impacting homeowners.   

“I would like to thank Assemblywoman Heidi Kasama for assisting NLTA with the passage of this important legislation,” said Sylvia Smith Turk, division president for Stewart Title Co. and past president of NLTA. “NLTA members are proud to support and sponsor legislation to protect property rights for Nevada homeowners.”

The new law: 

  • Makes NTRAPS unenforceable by law.
  • Restricts and prohibits the recording of NTRAPS in property records. 
  • Creates penalties if NTRAPS are recorded in property records. 
  • Provides for the removal of NTRAPS from property records and recovery of damages. 


Contact ALTA at 202-296-3671 or [email protected].