New York becomes latest state to outlaw NTRAPs

New York became the latest state to officially enact legislation that outlaws the practice known as Non-Title Recorded Agreements for Personal Services or NTRAPS, which threatens senior citizens with loss of their homes. 

Gov. Kathie Hochul signed the bill into law after it passed the New York State Legislature with wide bipartisan support earlier this year. Upon signing, New York became the 33rd state with laws in its books explicitly banning NTRAPs.

Real estate agents have faced charges of pressuring unsuspecting homeowners, often senior citizens, to push them into signing long-term NTRAP fee agreements, often with cash incentives. The agreements add the agents' names onto property title records and can extend as long as 40 years, granting NTRAP providers exclusive rights to future sales, with severe financial penalties for breach of contract or early termination.  

Several trade and advocacy organizations, including title industry groups and the American Association of Retired Persons, have been at the forefront of nationwide efforts to introduce and advance anti-NTRAP legislation.

"Bad actors are constantly devising new ways to victimize homeowners, and it has never been more challenging for policymakers to keep up," said New York State Land Title Association President Mark D'Addona in a press release. "NYSLTA is committed to fight on all fronts for New York homeowners to help protect one of the most important investments of their lives."

Upon bill signing, the following provisions went into effect.

• NTRAPS become unenforceable
• Attachment of contracts on property records are restricted and prohibited, with penalties applied for any violations.
• Efforts will be made to remove current NTRAPs from property records, and assistance is to be provided for recovery of damages.   
  

Earlier in 2025, New Hampshire and Rhode Island also joined the ranks of states signing NTRAP legislation into law. 
"We look forward to working on similar legislative solutions in more states to help protect homeowners against this predatory real estate practice," said AARP Government Affairs Director Samar Jha. 

Developments on the legal front

The New York announcement arrives just weeks following the most recent legal settlements involving one of the most notorious alleged NTRAP providers. 

MV Realty agreed to settle outstanding cases with the attorneys general of both Idaho and New Jersey this fall, nullifying all signed contracts it had with residents of both states.  

Terms of the settlement also included financial penalties and restitution for the Florida-based real estate firm. MV Realty has faced legal action or fallen under investigation in at least twelve states this decade.