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New Hampshire is joining fellow New England state Rhode Island this week in enacting legislation related to non-title recorded agreements for personal services (NTRAPS) — popularly known as right-to-list agreements.
Under these agreements, a homeowner signs over the right to list their home for up to 40 years in exchange for a nominal one-time cash payment. MV Realty, which has come under fire from several states attorneys general, was the most notable user of these agreements.
“The property rights of American homeowners must be safeguarded,” said Elizabeth Blosser, the chief of strategy, communications and innovation at the American Land Title Association (ALTA), which has championed the banning of these agreements.
“It is essential to ensure there are no unreasonable restraints on a homeowner’s ability to sell or refinance their home in the future due to unwarranted transaction costs.”
S.B. 164 was signed into law by New Hampshire Gov. Kelly Ayotte on Tuesday. The bill includes provisions that make right-to-list agreements unenforceable.
Additionally, the bill restricts and prohibits the recording of these agreements in property records; creates penalties if the agreements are recorded in property records; and provides for the removal of these agreements from property records and recovery of damages.
“This legislation is a critical step forward in protecting New Hampshire homeowners — especially older adults — from deceptive and predatory real estate practices,” said Christina FitzPatrick, AARP‘s New Hampshire state director, whose organization has worked with ALTA to promote legislation related to right-to-list agreements.
“By prohibiting these unfair agreements, SB 164 helps ensure that Granite Staters can maintain control over one of their most important assets: their homes,” FitzPatrick added.
In total, 33 states have passed laws banning or making right-to-list agreements unenforceable.
