NTRAP is now unenforceable in another state

Kentucky becomes latest state to pass Legislation to ban NTRAPSor a non-title recording agreement for personal services, homeowners find themselves deceived into signing contracts that hinder their ability to sell their property in the future.

In late March, the Kentucky House unanimously passed House Bill 88 in a 96-0 vote, and the Senate did the same a week ago. The bill is expected to be signed by Gov. Andy Beshear in the coming weeks. Rep. Michael Meredith is the lead sponsor of the bill.

“Several real estate companies have been using predatory business models to target seniors and financially insecure homeowners,” Gary Adkins, AARP Kentucky volunteer president, said in a release. host.”

He added: “Older people are always being specifically targeted and extra safeguards are needed to protect them from this unfair, deceptive and abusive behaviour.”

Businesses that engage in this practice often offer cash gifts to homeowners in exchange for an agreement requiring their services to be used for any future sales. But the length of the agreement and hefty fees for early termination are hidden in the contract, and the company’s name sometimes shows up in headline searches.

NTRAP has been observed in property records since 2018, According to the American Land Title AssociationMV Realty, one of the alleged perpetrators of the NTRAP campaign, began marketing the “service” in Florida in 2017. To date, 10 states have sued MV Realty, including Missouri, which filed suit as recently as mid-March.

Kentucky’s bill would ban such agreements from appearing in property records and impose penalties for violators. The legislation would also provide a way to remove NTRAPs that already appear on records and render them unenforceable under state law.

The bill’s passage furthers a policy trend that began in 2023, when Utah became the first state to pass anti-NTRAP legislation. Fifteen other states have since followed suit, and four more bills are awaiting the governor’s signature.Indiana and Indiana State Legislatures and Virginia both passed new laws over the past few weeks.

Alta and AARP “Homes are often a consumer’s largest investment, and the best way to support certainty about land ownership is through public policy,” said Elizabeth Blosser, ALTA’s vice president of government affairs, in a news release.

“We must ensure that homebuyers’ ability to sell or refinance their properties in the future is not unreasonably restricted by unwarranted transaction costs.”

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button