Rhode Island Legislation Will Protect Homebuyers from Predatory Contracts

WASHINGTON, July 15, 2025 /PRNewswire/ -- The American Land Title Association (ALTA), the national trade association of the land title insurance industry, AARP and the New England Land Title Association (NELTA) applaud the Rhode Island General Assembly for passing House Bill (HB) 5185/Senate Bill (SB) 133, which includes 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.

"The property rights of American homeowners must be safeguarded," said Elizabeth Blosser, ALTA's chief of strategy, communications and innovation. "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."

"The passage of HB 5185/SB 133 is a continuation of AARP's advocacy efforts, undertaken in collaboration with ALTA in other states, to put an end to this harmful practice," said Samar Jha, government affairs director, AARP. "We look forward to working on similar legislative solutions in more states to help protect homeowners against this predatory real estate practice."

HB 5185/SB 133 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 New England Land Title Association appreciates the work conducted by the legislature and the governor to curb this type of predatory practice and protect the consumers of Rhode Island," said NELTA Executive Director Mark Bennett CAE.

"For older Rhode Islanders, their home is often their greatest asset," said Catherine Taylor, state director, AARP Rhode Island. "Without adequate protections against the predatory nature of these types of agreements, they could lose their financial security that they've worked so hard for. We thank Chairman LaMountain and Chairwoman Donovan for their leadership and dedication to protecting Rhode Island homeowners."

The bill 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.

A total of 33 states have passed NTRAPS legislation. Rhode Island Gov. Dan McKee signed the legislation on June 13, 2025.

About ALTA
The American Land Title Association, founded in 1907, is a national trade association representing more than 6,000 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.

Contact: Megan Hernandez
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SOURCE American Land Title Association