30 States Have Passed Bills Protecting Consumers From Unfair Real Estate Fee Agreements

June 13, 2024

Connecticut, Illinois, Louisiana and Minnesota became the latest states to pass 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 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.

  • Connecticut: Gov. Ned Lamont signed SB 201 into law on June 4. 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.
  • Illinois: In the coming months, Gov. J.B. Pritzker is expected to sign SB 3420. The bill 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 and provide for the removal of NTRAPS from property records and recovery of damages.
  • Louisiana: Gov. Jeff Landry signed the Senate Bill (SB) 506 on May 28. The law makes obtaining a security interest against a home to secure NTRAPS an unfair trade practice actionable by the Louisiana Attorney General, makes NTRAPS unenforceable against third parties and provides a method for homeowners to request a court to order NTRAPS to be removed from a home title.
  • Minnesota: Gov. Tim Walz signed SF 4097 on May 21. 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.

ALTA partnered with state land title associations and AARP in each state to get the bills passed.  

Additional states having passed versions of bills that address NTRAPS include Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Indiana, Iowa, Kentucky, Maryland, Maine, Nebraska, Nevada, 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].