Five More States Ban Unfair Real Estate Fee Agreements

May 9, 2024

Nearly half of the states in the country now have passed bills 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).  

The latest states to pass bills over the past month include Arizona, Nebraska, Kentucky, Oklahoma and West Virginia. These states join 19 others that previously passed legislation banning NTRAPS, including Alabama, California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Maryland, Maine, Nevada, North Carolina, North Dakota, Ohio, Oregon, Tennessee, Utah, Virginia and Washington.

  • Arizona: Gov. Katie Hobbs signed Senate Bill (SB) 1218 into law on April 2. The 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; and provides for the removal of NTRAPS from property records and recovery of damages.
  • Nebraska: Gov. Jim Pillen signed Legislative Bill (LB) 1073 into law on April 18. This legislation makes NTRAPS unenforceable by law; restricts and prohibits the recording of NTRAPS in property records; and creates penalties if NTRAPS are recorded in property records.
  • Kentucky: Gov. Andy Beshear signed House Bill (HB) 88 into law on April 5. The 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; and provides for the removal of NTRAPS from property records and recovery of damages.
  • Oklahoma: Gov. Stitt signed House Bill (HB) 3318 into law on April 26. The 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; and provides for the removal of NTRAPS from property records and recovery of damages.
  • West Virginia: Gov. Jim Justice signed House Bill (HB) 5326 on March 26. The legislation goes into effect on June 6. The 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; and provides for the removal of NTRAPS from property records and recovery of damages.

“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.


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