Hawaii Joins States Protecting Homebuyers from Predatory Contracts  

July 18, 2024

Hawaii recently passed Senate Bill (SB) 2861/Act 176, which 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). The legislation, which was signed July 2 by Gov. Josh Green, makes NTRAPS unenforceable.

“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 2861/Act 176 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.

“HLTA members proudly supports the passage of SB 2861/Act 176 and commend our legislature for protecting Hawaii’s homebuyers from unfair practices,” said HLTA President Jerome Bundalian.

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.

Hawaii joins 30 other states that have passed versions of bills that address NTRAPs, including Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Maine, Minnesota, Nebraska, Nevada, North Carolina


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