Arizona Bans Unfair Real Estate Fee Agreements

April 9, 2024

Arizona became the 22nd state to pass legislation protecting homeowners from the predatory practice of filing unfair real estate fee agreements in property records.

The Arizona State Legislature recently passed Senate Bill (SB) 1218, which includes provisions protecting homeowners from the filing of Non-Title Recorded Agreements for Personal Services (NTRAPS). Sponsored by Sen. John Kavanagh (R-AZ), the new law will make NTRAPS unenforceable. Arizona Gov. Katie Hobbs signed the bill into law on April 2.

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

SB 1218 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.

“With the passage of SB 1218, the Arizona State Legislature has proven its commitment to protecting homeowners from deceptive and predatory practices. With this legislation, Arizonans can rest assured that their largest financial investments – their homes – are not at risk to NTRAPS,” said LTAA President Elizabeth Ray. “The LTAA commends our lawmakers for their efforts and particularly applauds Sen. Kavanagh for his sponsorship of the bill.”

The new law will:

  • Make NTRAPS unenforceable by law.
  • Restrict and prohibit the recording of NTRAPS in property records.
  • Create penalties if NTRAPS are recorded in property records.
  • Provide for the removal of NTRAPS from property records and recovery of damages.

Other states to pass similar legislation include Alabama, California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kentucky, Maryland, Maine, Nevada, North Carolina, North Dakota, Ohio, Oregon, Tennessee, Virginia, Washington and West Virginia.

Contact ALTA at 202-296-3671 or