For Immediate Release
New Louisiana Law Will Protect Homebuyers from Predatory Contracts
The American Land Title Association (ALTA), the national trade association of the land title insurance industry, AARP, the Louisiana Land Title Association (LLTA) and Louisiana REALTORS applaud the Louisiana State Legislature for passing Senate Bill (SB) 506/Act 363, 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 new law will make 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.”
“The passage of SB 506/Act 363 is a continuation of AARP’s advocacy efforts, undertaken in collaboration with ALTA in other states, to put an end to this harmful practice,” said AARP Government Affairs Director Samar Jha. “We look forward to working on similar legislative solutions in other states to help protect homeowners against this predatory real estate practice.”
SB 506/Act 363 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.
“The LLTA finds SB 506/Act 363 by Sen. Rick Edmonds to be an essential element in maintaining the integrity of Louisiana’s real estate market,” said LLTA President Brent Laliberte. “Our legislative committee worked hand-in-hand with the Louisiana Association of Realtors to draft the bill, which is aimed at preventing unscrupulous marketers, utilizing unfair and deceptive trade practices from taking advantage of Louisiana property owners.”
“For many older adults in Louisiana, their home is their most important asset and the cornerstone of their financial stability,” said Andrew Muhl, director of advocacy for AARP Louisiana. “They can also be especially vulnerable to unfair and abusive practices. Therefore, they rely on our state lawmakers to safeguard them against fraud or deception.”
“This legislation is important to the nearly 20,000 REALTORS in Louisiana because it protects homeowners from deceptive and unfair practices that hinder their ability to sell homes,” said Norman Morris, CEO of Louisiana REALTORS. “Louisiana REALTORS was honored to lead such a great coalition of organizations to protect Louisiana homeowners, and we thank Sen. Edmonds for championing the bill.”
The new law will:
- Make obtaining a security interest against a home to secure NTRAPS an unfair trade practice actionable by the Louisiana Attorney General.
- Make NTRAPS unenforceable against third parties.
- Provide a method for homeowners to request a court to order NTRAPS to be removed from a home title.
Louisiana Gov. Jeff Landry signed the legislation on May 28, 2024.
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About ALTA
The American Land Title Association, founded in 1907, is a national trade association representing more than 6,000 title insurance companies, title and settlement agents, independent abstracters, title searchers and real estate attorneys. ALTA members conduct title searches, examinations, closings and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles.
Contact: Megan Hernandez
Office: 202-261-0315
Email: mhernandez@alta.org