ALTA, OLTA Applaud Ohio for Passage of NTRAPS Bill

WASHINGTON, July 7 (TNSgov) -- The American Land Title Association issued the following news release:

The American Land Title Association (ALTA), the national trade association of the land title insurance industry, and the Ohio Land Title Association (OLTA) applaud the Ohio legislature for passing House Bill (HB) 33, which included 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 by law.

"The property rights of American homebuyers must be protected," said ALTA Vice President of Government Affairs Elizabeth Blosser. "A home often is a consumer's largest investment, and the best way to support the certainty of landownership is through public policy. 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."

NTRAPS have been recorded in property records since 2018. The practice preys upon homeowners, offering small cash gifts in exchange for decades-long contracts for the exclusive rights to sell the property. Submitting NTRAPS for inclusion in property records characterized as liens, covenants, encumbrances or security interests in exchange for money creates impediments and increases the cost and complexity of transferring or financing real estate in the future.

The language included in HB 33 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 OLTA appreciates the work conducted by the legislature and the governor to curb this type of predatory practice and protect the consumers of Ohio," said OLTA Executive Director Mark Bennett, CAE.

The new law will:

* Make NTRAPS unenforceable by law.

* Restrict and prohibit the recording of NTRAPS in property records.

* Create penalties if NTRAPS are recorded in property records.

* Provide for the removal of NTRAPS from property records and recovery of damages.

Ohio Gov. Mike DeWine signed HB 33 on July 3, 2023.

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About ALTA

The American Land Title Association, founded in 1907, is a national trade association representing more than 6,500 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.

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Original text here: https://www.alta.org/publications/press-release.cfm?ALTA-OLTA-Applaud-Ohio-for-Passage-of-NTRAPS-Bill-