Housingwire, October 29, 2025
“As new American Land Title Association (ALTA) President David Townsend, Esq, NTP steps into his role, he’s wasting no time setting an agenda that includes expanded housing access and a halt to right-to-list agreements — also known as non-title recorded agreements for personal service (NTRAPS).
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“Townsend emphasized that ALTA is continuing to push for more NTRAPS bans at the state level.
” ‘With NTRAPS and heirs’ property, we’re working on getting fairness and access to homeownership,’ he said. ‘We’re also working closely with our partners and state legislatures across the country to get properties back into circulation and clear title to that inherited land.’
“In total, 33 states have passed laws that ban NTRAPS agreements or make them unenforceable.”
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● What the heck are NTRAPS agreements? From ALTA’s website:
“What are Non-Title Recorded Agreements for Personal Services (NTRAPS)?
“The practice by service providers of offering homeowners nominal upfront monetary compensation in exchange for an agreement for future services. These agreements are recorded in property records and purport to run with the land, binding future successors and adding cost, complexity and barriers to transferring or financing their property.
“Are NTRAPS currently being used in the marketplace?
“Real estate brokerage firms are offering nominal cash to homeowners if they sign a listing agreement that is binding for up to 40 years. Since 2018 these types of NTRAPS have been recorded in property records as covenants and encumbrances on the title to homes. Homeowners have faced penalties of 3% of their property value, as determined at the sole discretion of the vendor, if they wish to have the encumbrance removed because they want to list their property with another brokerage firm or for other uncontemplated occurrences such as:
○ Transferring property title to a family member
○ Foreclosure
○ Transfer on death
○ Conveyance due to divorce
○ Sale to a developer or other person or entity not involving licensed real estate professionals
“In addition, if the homeowner fails to pay this penalty, the firm can file a lien on the home, further clouding the title.”
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